How percentage deductibles work
A hurricane or named-storm deductible is a percentage of the dwelling limit (Coverage A), not of the damage. On a home insured for $640,000, a 2% deductible is $12,800 before the policy pays anything for that storm. Policies define exactly which storms trigger it and for how long, so read the endorsement.
Where you’re likely to see one
- Cape Cod and the Islands, where both private carriers and the FAIR Plan (MPIUA) commonly use them.
- South Shore and South Coast towns close to open water.
- Some North Shore and Boston Harbor neighborhoods, depending on the carrier and distance to the shore.
Why the deductible matters in appraisal
Appraisal sets the amount of loss; the deductible is applied afterward. When a percentage deductible is large, a few missed line items can decide whether any payment is owed at all. See hurricane and nor’easter claim appraisal for how we approach coastal wind losses.
About this calculator
Is the percentage based on my damage?
No. It’s based on the dwelling coverage limit shown on your declarations page.
Does it apply to flood damage?
Flood is excluded from standard homeowner policies and is covered, if at all, by a separate flood policy with its own deductible.
Can I lower it?
Some carriers offer lower percentages for a higher premium or after mitigation such as storm shutters. Ask your agent.