Fay’s damage will be covered by insurance policies’ all-perils section
Aug 22, 2008
South Florida Sun-Sentinel--August 22, 2008
By Julie Patel
South Florida Sun-Sentinel
Tropical Storm Fay’s winds may have reached 60 mph in parts of South Florida, but the damage it wreaked won’t be covered by homeowners’ windstorm insurance policies.
Because the storm didn’t officially become a hurricane, the damage will be covered by the all-perils portion of a property owner’s policy, Florida Insurance Commissioner Kevin McCarty said Thursday.
That’s good news for consumers because hurricane deductibles are much higher than all-perils deductibles. Under Florida law, insurers can offer a deductible that is up to 10 percent of the total value of a home.
“‘Other perils’ deductibles are generally lower, such as $500, $1,000, or 1 percent of the value of the home,” according to an Office of Insurance Regulation fact sheet.
Storm damage caused by flooding won’t be covered, however, unless the homeowner has a separate flood insurance policy.
It’s too late to purchase flood insurance for damage from Fay, but policies can be purchased from the National Flood Insurance Program for future storms and typically take effect 30 days after they’re purchased.