Named Storm Deductible: “The 5% Deductible Trap in Florida.”

Hurricane Ian hit. My boat was in a rack. The roof collapsed. Damage: $20,000. My standard deductible is $1,000. The adjuster said, “Since this was a Named Storm, your deductible is 10% of the hull value.” My boat is insured for $150,000. The deductible is $15,000. They paid me $5,000.

Key Takeaways

  • Percentage vs. Flat Deductible: In hurricane zones (FL, TX, NC), policies carry a special “Named Storm Deductible.” It is a percentage of the Hull Value (e.g., 5%, 10%, or even 20%), not a flat dollar amount.
  • The Haul-Out Loophole: Some insurers (like Pantaenius or BoatUS) reduce this deductible if you haul the boat out and strap it down according to a submitted storm plan.
  • “Named Storm” Definition: It applies if the storm was named by NOAA, even if it was just a Tropical Storm when it hit you.
  • Total Loss Risk: If your boat is worth 50kandyouhavea1050kandyouhavea10 5k), and the damage is $6k, it’s barely worth filing the claim.

The “Why” (The Trap)

The trap is “The Fine Print.”
You see “$1,000 Deductible” on the front page. The Named Storm deductible is buried in the endorsements.
Insurers do this to survive catastrophe losses. They shift the first layer of risk to you.

The Investigation (I Checked Florida Policies)

  • Progressive: Commonly 5% or 10% for Named Storms.
  • Geico: Often 5% or 10%.
  • Chubb: Can purchase a lower deductible, but premiums are massive.

Comparison Table

ScenarioStandard DeductibleNamed Storm Deductible (10%)DamagePayout
Collision$1,000N/A$20,000$19,000
HurricaneN/A$15,000$20,000$5,000

Step-by-Step Action Plan

  1. Check Your %: Look at your policy NOW. Is it 5%, 10%, or flat?
  2. Execute the Haul-Out Plan: If your policy offers a deductible reduction for hauling out (e.g., “Deductible waived if hauled”), spend the money to haul it. Saving the $15,000 deductible is worth the $1,000 haul-out fee.
    • [IMAGE: Declarations page highlighting ‘Named Storm Deductible: 10%’]
  3. Self-Insure Small Damage: If the damage is close to the deductible, don’t file. It counts as a claim but you get $0.
  4. Secure Straps: If stored ashore, strap it to ground anchors. If it falls over because you didn’t strap it, they might deny for negligence regardless of the deductible.

FAQ

Does the marina’s insurance pay?
Only if the marina was negligent (e.g., the roof was known to be rotten). Otherwise, it’s an “Act of God” and you rely on your own policy.

What if I couldn’t haul out?
The high deductible applies. No excuses.

Scroll to Top