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Hurricane Deductibles in New Jersey: What Homeowners Need to Know

If you own a home in New Jersey—especially near the coast—you may have a hurricane deductible or windstorm deductible built into your homeowners insurance policy. These deductibles can significantly affect how much you pay out-of-pocket when a major storm causes damage.

At the Overmyer Insurance Agency we want you to understand all aspects of your homeowners insurance coverage. This article will help you understand how these deductibles work, when they apply, and what to look for in your policy before the next storm hits.



What Is a Hurricane Deductible?


A hurricane deductible is the portion of storm damage you’re responsible for paying before your insurance kicks in. Unlike a standard deductible, which is usually a flat dollar amount, hurricane deductibles are often a percentage of your home’s insured value—typically between 1% and 5%.


Example:If your home is insured for $500,000 and your policy has a 2% hurricane deductible, you would be responsible for the first $10,000 in damage caused by a qualifying hurricane.


Which Homes in NJ Are Affected?


Hurricane deductibles are most commonly applied to homes in coastal or wind-prone regions, including:


  • Monmouth County

  • Ocean County

  • Atlantic County

  • Cape May County

  • Parts of Middlesex, Bergen, and Hudson counties


Insurance companies use specific ZIP codes and risk models to determine where these deductibles apply. Many of these areas fall into what are considered high-risk coastal zones.


Hurricane vs Windstorm Deductibles: What’s the Difference?


Many insurance policies in New Jersey include both hurricane and windstorm deductibles, and they are triggered by different conditions:

Deductible Type

Trigger Event

Applies To

Hurricane Deductible

Declared hurricane with sustained winds (via NHC)

Wind damage caused by a hurricane

Windstorm Deductible

Any strong wind event, including nor’easters and tropical storms

General wind-related damage

Some policies also include “named storm deductibles,” which apply to any storm named by the National Hurricane Center—even if it does not reach hurricane strength.

Understanding these differences is critical, as they determine how much you will be expected to pay before your insurance coverage applies.


Why It Matters


Even a relatively low percentage deductible can lead to a large out-of-pocket cost. For example, a 2% deductible on a $400,000 home means an $8,000 responsibility before any claim payout.


Some homes located in higher-risk ZIP codes may have mandatory hurricane deductibles as high as 5%. That would mean $25,000 or more out-of-pocket on a $500,000 home.

It’s important to check your policy and be aware of these figures before a storm occurs.


How to Prepare


  1. Review Your Insurance Policy: Be aware of your homeowners insurance deductibles, and check your declarations page for terms like “Hurricane Deductible,” “Named Storm Deductible,” or “Windstorm Deductible.”

  2. Understand the Trigger: Ask your agent what conditions activate these deductibles. Some deductibles are triggered only by an official hurricane declaration, while others apply more broadly, such as a windstorm or nor'easter.

  3. Consider Flood Insurance: Homeowners insurance does not cover flood damage. If you live in a flood-prone area, you should also carry a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer.

  4. Shop for Better Coverage: Not all insurers treat hurricane and windstorm deductibles the same way. Independent agents can help you find options with more favorable terms, especially in competitive coastal markets. Here at OIA we can help with this. We have partnered with many different insurance companies to find the most competitive coverage and premium options for you.


FAQ: Hurricane & Windstorm Deductible Frequently Asked Questions


Do all New Jersey homeowners have a hurricane deductible?


Not necessarily. These deductibles are more common in coastal and high-risk wind areas. Inland homes may not have them, or they may have a general windstorm deductible instead.


What’s the difference between a hurricane deductible and a named storm deductible?


A hurricane deductible is only triggered when the storm is officially declared a hurricane by the National Hurricane Center. A named storm deductible applies to any named tropical system, even if it doesn't reach hurricane strength.


How much could I owe before coverage kicks in?It depends on your home’s insured value and the percentage stated in your policy. A 5% deductible on a $500,000 home equals $25,000 out-of-pocket.


Can I reduce my hurricane deductible?


Some insurers allow you to select a lower deductible in exchange for a higher premium. Others may have set deductibles in high-risk areas. It's best to consult your agent to explore your options.


Is flood damage covered by my homeowners policy?No. Flood damage is excluded from standard homeowners insurance. You need a separate flood policy, even if the flooding is caused by a hurricane.


Final Thoughts


New Jersey homeowners—especially those in coastal areas—should take the time to understand their hurricane and windstorm deductibles. These provisions can lead to major out-of-pocket costs if you experience storm damage and haven’t planned accordingly.

At The Overmyer Insurance Agency, we help New Jersey homeowners evaluate their policies, identify exposures, and secure coverage that fits their needs—before the next storm hits.


Need help reviewing your policy or shopping for better coverage? Visit www.oianow.com or give us a call at your our Cranford NJ office for expert guidance. 908-476-8685






 
 
 

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