What are the major differences between your AOP and hurricane deductible?

Published: 15th January 2010
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What Are The Major Differences Between Your AOP And Hurricane Deductible?

many of us who move to FL from other states are infrequently blown away with the two deductible ideas we have here in FL in regard to our homeowner insurance. For those of us who have lived here for a bit we have kind of gotten used to these changes since our system slowly modified after hurricane Andrew in 1992.

first of all what's an all other premium ( AOP ) deductible? This deductible is for non-hurricane related claims like fire, theft, vandalism, random water discharge and acts of the Lord God like lightning, tornados, hail to name a few. If a whirlwind that's not a named storm causes damage, this is mostly subject to your AOP deductible. These deductibles are customarily 500, one thousand or 2500 with most carriers.

Your hurricane deductible is much different and only applies to named typhoons classified as hurricanes. With most carriers, if your house is valued over $100,000 then the standard hurricane deductible is 2 percent of your coverage'A' amount on your policy. Coverage'A' is your structure or dwelling coverage. Some people get bewildered thinking they need to only pay 2 percent of the damage which is a large difference from how it is actually paid.

As an example shall we say your house is valued at 250,000. If you have a 2% hurricane deductible then you will be answerable for the 1st 5000 of damage to you home. Anything over that deductible the insurance company will pay as much as your policy boundaries to fix your home.

Some carriers will set your deductible at 2% but let you purchase down to as low as a 5 hundred deductible. In deciding this you have to weigh the benefits and disadvantages of your exposure vs. The add'l value of lowering your deductible. If you are closer to the coast then this is going to be something to strongly consider. keep in mind the closer you are to the coast ; less carriers will offer the ability to buy down your deductible. Some even make it imperative for you to go with a 5% or perhaps 10% hurricane deductible to lower their exposure. I'm hoping this info was useful in explaining your deductibles!

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