How Does a Hurricane Deductible Work in New York?

The percentage applies to your Coverage A dwelling limit on the declarations page, not to the size of the claim. With a $500,000 dwelling limit and a 3% hurricane deductible, the first $15,000 of a covered hurricane loss is yours, compared with perhaps $1,000 or $2,500 under your regular deductible.

Many Long Island coastal policies carry these deductibles, especially south of Sunrise Highway, on the East End and on the North Shore bluffs. Some carriers make them mandatory near the water.

New York insurance regulations limit when an insurer can impose a hurricane deductible. The usual requirements are that the National Weather Service names a hurricane, issues a hurricane warning for part of New York, and the storm produces hurricane-strength winds in the state, within the time window your policy defines. The exact wording varies by carrier, so read your own policy's trigger language.

If a storm weakened to a tropical storm or post-tropical cyclone before it reached Long Island, or never prompted the required warning, the trigger may not have been met. In that case your regular deductible should apply.

Your NFIP or private flood policy has its own separate deductible. A hurricane can trigger your homeowners hurricane deductible for wind damage and your flood deductible for water damage at the same time. Separating the wind damage from the flood damage controls how much of each deductible you actually pay.