HURRICANE DEDUCTIBLES

What a named storm deductible is

Many South Carolina policies have a separate deductible for hurricanes or named storms, often a percentage of the dwelling coverage rather than a flat amount. A 2% deductible on $300,000 of dwelling coverage is $6,000; a 5% deductible on the same home is $15,000.

When it can apply

Under S.C. Code Regs. 69-56, a named storm deductible is triggered only by a hurricane, tropical storm or tropical depression named, designated or identified by the U.S. National Weather Service or the National Hurricane Center. A winter storm named by the media does not trigger it. If the damage came from a separate thunderstorm, hail or tornado, the regular deductible should apply. Check the dates and the NOAA storm report for your area.

How it must be disclosed

• The policy must include a $100,000 example showing how the deductible works and a warning in capital letters on the face of the policy (Reg. 69-56).
• If a named storm deductible is added or increased at renewal, the named insured must sign or initial a disclosure.
• Under S.C. Code § 38-75-755, the insurer must disclose any separate hurricane, wind or named storm deductible at issue and at each renewal.

Common deductible disputes

• The insurer applies the hurricane deductible to damage from a separate storm.
• The percentage is applied to the wrong coverage amount.
• The deductible was added at renewal without the required signed disclosure.
• One deductible is charged per building on a multi-building association or commercial property when the policy says otherwise.

See also hurricane claims, wind vs flood disputes and claim deadlines in South Carolina.

Questions about a claim? Call 843-284-5790 or request a case review.

This page is general information about South Carolina law, not legal advice. Reading it does not create an attorney-client relationship. Every claim depends on its own policy and facts.