Connecticut Hurricane Deductibles

A deductible is the dollar amount that a policyholder pays toward repairs when there is damage covered by a policy. When a policy has a larger deductible, the premium is lower than it would be with a smaller deductible.

A homeowners policy may have two deductibles:

  • One is for any damage caused by covered perils, and
  • Another is specifically for hurricane losses only.

NJM Insurance Group utilizes hurricane deductibles with approval of the Connecticut Insurance Department (CID).

Where can you find your hurricane deductible?

A policy with the hurricane deductible will display both deductibles on the Declarations Page.

How much is a hurricane deductible?

A hurricane deductible is an amount equal to either 2% or 5% of the policy's Coverage A (Dwelling) or Coverage B (Other Structures) limit, whichever is greater. The percentage depends on the location of the home.

When does the hurricane deductible apply?

The hurricane deductible may be applied when a hurricane with sustained surface winds of 74 miles per hour or more is measured anywhere in the State of Connecticut and a warning is issued by the National Weather Service for anywhere in the State. The hurricane deductible ends the earlier of 24 hours following termination of the last hurricane warning issued for any part of Connecticut or 24 hours after the hurricane is downgraded from a hurricane by the National Weather Service for any part of Connecticut.

The deductible of 2% or 5%, as shown on the Declarations Page, will apply to any loss or damage to covered property caused by:

  • Wind, wind gusts, hail, rain, tornadoes or cyclones resulting from the hurricane,
  • Wind-driven objects within the time period,
  • Any event or sequence of events concurrently resulting from the hurricane.

However, if a peril other than those stated above causes a covered loss, the insurance settlement will utilize the standard deductible.

At the end of the last 24-hour measurement period, the standard deductible will be used for all covered losses once again.

How is the hurricane deductible calculated?

Here is an example based on an insurance policy with the following details:

Coverage A (Dwelling): $300,000
Coverage B (Other Structures): $30,000
Coverage C (Personal Property): $150,000
All-peril deductible: $1,500
Hurricane deductible: 5%

Hurricane Deductible Calculation

Coverage A (Dwelling) Limit: $300,000
Hurricane Deductible Rate: ×5%
Total Deductible:
This is the amount you would pay.
$15,000

A loss would be settled as follows:

Damage to Dwelling: +$100,000
Damage to Contents: +$25,000
Damage to Other Structures: +$4,000
Total Adjusted Damage: =$129,000
Less Deductible:
This is the amount you would pay.
-$15,000
Insured Amount:
This is the amount NJM would reimburse you for.
$114,000

The information and descriptions of coverage on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy; the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.