How does the hurricane deductible work in Florida?

When does the hurricane deductible apply?

Under s. 627.4025, a hurricane is a storm declared a hurricane by the National Hurricane Center. The hurricane period begins when a hurricane warning is issued for any part of Florida and ends 72 hours after the last hurricane watch or warning for any part of Florida ends. Hurricane coverage includes interior rain damage if the wind first creates an opening in the building.

Wind damage from a tropical storm, tornado or hail that isn't a declared hurricane is handled differently; on Citizens multiperil policies, for example, it falls under the all-other-perils deductible. When the hurricane deductible applies, no other deductible on the policy may be applied.[3][4][2]

Which deductible options must insurers offer?

Before issuing a personal residential policy, insurers must offer hurricane deductibles of $500, 2%, 5% and 10% of the dwelling limit, with these exceptions as of the 2026 statutes:

• Dwelling limits of $100,000 to under $250,000: instead of the $500 option, the insurer may offer up to a 2% deductible with a one-renewal guarantee against nonrenewal to reduce hurricane exposure
• $250,000 or more: the $500 option isn't required
• $1 million to under $3 million: a 3% option may replace the 2% option
• $3 million or more: the 2% option isn't required
• Homes valued under $500,000: a deductible above 10% requires a handwritten statement signed by every named insured and, if mortgaged, the lender's written approval[1][2]

How does the calendar-year rule work?

The deductible is shown in dollars on your declarations page; Citizens' example is that a 2% deductible on a home insured for $200,000 is $4,000. DFS illustrates the annual rule with that same home and a $1,000 all-other-perils deductible: a first hurricane causes $2,000 of damage, which you pay but which is credited toward the $4,000. A second hurricane causes $5,000; the $2,000 balance applies and the insurer pays $3,000. Any later hurricane that year uses the $1,000 deductible.

The credit carries over only with the same insurer or insurer group; switch to an unrelated company mid-year and the full deductible applies again. DFS recommends reporting hurricane damage even when it's below your deductible so it counts toward the annual total.[2][4]

What else should you check?

An inflation guard endorsement can raise a percentage-based deductible over time, and insurers must disclose that. Surplus lines policies may use different deductibles and are not protected by the Florida Insurance Guaranty Association (FIGA). Ask a licensed insurance agent to quote the premium difference between deductible options so you can weigh savings against what you could pay after a storm.[2]