Florida homeowners may face hefty hurricane deductibles and higher premiums after filing claims

“Just like a credit bureau, there’s a claims bureau — and those claims can affect your future rates.”

For homeowners in Florida, a hurricane can mean more than repairs to the roof. A Pensacola insurance agent says even one storm-related claim can influence what people pay for coverage for years afterward.

What to know

According to WEAR News, Josh Marriott, an insurance agent with Josh Insurance in Pensacola, said homeowners should think carefully before filing a hurricane claim right away. Even when a claim does not result in a payout, it can still affect future premiums.

To illustrate the point, Marriott compared claim history with credit reporting, saying, “Just like credit bureau, there is a reporting bureau for claims. And those will impact your future rates. I say, will they may impact your future rates for the next five years?”

A claim may also not be worth filing if the estimated repairs are below the deductible, since the insurer would pay nothing and the homeowner would still cover the full cost.

For an average Escambia County home valued at about $280,000, a hurricane deductible of 2% to 5% could leave the homeowner responsible for roughly $5,000 to $14,000 before coverage applies to an eligible loss.

More context

Marriott said one detail many homeowners overlook is how the hurricane deductible is calculated. It is not based on the repair bill, but on the home’s Coverage A amount, which is usually the insured value of the dwelling.

TCD Picks » Quince Spotlight

💡These best-sellers from Quince deliver affordable, sustainable luxury for all

“And some people don't realize where the percentage is on it,” he said, according to WEAR News. “It's on the highest number, which is called your coverage A.” Because that percentage is tied to the larger Coverage A figure, the upfront cost can be far higher than some homeowners expect after a storm.

If a homeowner has both a wind deductible and a hurricane deductible, Marriott said they generally do not combine for the same named storm. “But because there was a hurricane that came through, and it was named, that's all under the hurricane deductible,” he explained.

That means even when damage is covered, homeowners may still need significant cash on hand before insurance money is available.

What homeowners can do

Before submitting a claim, Marriott said homeowners should have a roofer inspect the damage. That review can help show whether repairs are likely to exceed the deductible and whether filing a claim makes sense based on what the insurer may cover.

“Talk to a roofer. The roofer is who actually works with the insurance company,” Marriott said, according to WEAR News. “So if a roofer goes out there and he looks at it and he's like, Yeah, I think this is what he'll tell you if he thinks it's worth a claim.”

For homeowners who file a claim but disagree with the insurer’s first estimate, Marriott said a contractor can provide documentation, define the repair scope, and negotiate with the insurance company over what should be included.

He said contractors have an incentive to be thorough: “They want to get paid, so they're going to submit everything they can to get the insurance coming to agree.”

Marriott also stressed how difficult storm recovery can be financially, saying, “Unfortunately, hopefully you have some sort of rainy day fund during this, literally what this is.”

Where to learn more

For a broader look at how hurricanes can affect homeowners’ insurance, these stories explore other issues.

• In Florida, recent hurricanes pushed premiums higher as the state’s insurance market became more fragile.

• One homeowner said an almost $8,000 payout followed hurricane damage despite a $300,000 policy.

• In Louisiana, Hurricane Francine’s billion-dollar toll raised concerns about insurer losses and higher costs for residents.