Named Storm Deductible
Named Windstorm Deductible
Hurricane Andrew and the many subsequent hurricanes have created restrictions in potential hurricane areas, particularly on the East Coast of the USA and Canada and the Caribbean Sea including the Bahamas and Gulf of Mexico.
In an effort to provide affordable insurance, Underwriters increase the applicable deductibles (usually for Hull & Machinery and Personal Effects) for losses caused by Named Storms, Named Windstorms and/or Catastrophes to cover partial and total losses.
The increase, depending on your policy wording, usually doubles the deductibles or applies a certain percentage.
For example; if the clause doubles the deductible(s) and your deductible is $1000, then claims arising from a Named Storm, Named Windstorm and/or Catastrophe are subject to a deductible of $2000.
Some policies apply a minimum percentage to Named Storm, Named Windstorm and/or Catastrophe losses. If your policy has this provision then a deductible of 5% or 10% (usually of the Hull value insured) or whatever amount the underwriter has agreed to apply, would be deducted from your claim.
For example; if the clause applies a 10% deductible and your vessel is insured for $100,000 then a deductible of $10,000 (10% of $100,000) would apply to Named Storm, Named Windstorm and/or Catastrophe losses.
Some policies exclude losses from Named Storms, Named Windstorms and/or Catastrophes. Claims resulting from Named Storms, Named Windstorms and/or Catastrophes would not be covered.
Usually deductibles for losses under the policy sections covering Liability, Protection & Indemnity, Uninsured Boaters, Underinsured Boaters and Medical Payments are not affected by Named Storms, Named Windstorms and/or Catastrophes.
A Named Storm or Named Windstorm is a storm, cyclone, typhoon, atmospheric disturbance, depression or other weather phenomena designated by the US National Weather Service and/or the US National Hurricane Center and where a number or name has been applied. “Hurricane Andrew”, “Tropical Storm Mitch”, Tropical Depression Number Seven” are examples of named or number weather systems.
A Catastrophe is an event where a (usually) natural disaster such as an avalanche, mudslide, flood, volcanic eruption, tsunami, earthquake, et cetera occurs and is assigned a disaster number or name or a State of Emergency is called by the authorities.
The Named Storm, Named Windstorm or Catastrophe deductible clause gives the property or boat owner plenty of incentive to protect property and with the early warning systems in place such as television, radio, newspaper, internet, weather radio bands, radio nets and other sources that should be diligently and regularly monitored before, during and after the applicable season; there should be plenty of time to implement your “Hurricane Plan” and protect your property, insured or not.