Thousands of Floridians soon will get a check that will enable them to begin repairing damage done by Hurricanes Charley or Frances. But for many, the amount they‘re responsible for paying could be steep.
After Hurricane Andrew in 1992, insurers doing business in Florida were allowed to charge higher deductibles on hurricane claims. Where homeowners are used to paying flat $500 or $1,000 deductibles, they will pay 2% or more of the value of their home for their hurricane deductible. For homes worth more than $100,000, homeowners would be responsible for at least $2,000 in repair costs.
The change was made in 1996, a concession state lawmakers made to insurers to keep them selling hurricane coverage in Florida.
Many don‘t realize they have a large deductible, said Tom Gallagher, Florida chief financial officer. "I really think that‘s a surprise people aren‘t expecting."
