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After Hurricane Sandy, New Jersey homeowners policies commonly began applying a hurricane or named-storm deductible expressed as what?

Q: After Hurricane Sandy, New Jersey homeowners policies commonly began applying a hurricane or named-storm deductible expressed as what?

A percentage of Coverage A, typically 1% to 5% — Following Hurricane Sandy in 2012, New Jersey homeowners policies — both voluntary-market and FAIR Plan — began widely incorporating a percentage hurricane or named-storm deductible. These deductibles are calculated as a percentage of the Coverage A dwelling limit, typically falling in a 1%-5% range, and apply in place of the flat all-other-peril deductible when a triggering named storm causes wind damage. Flat $250 deductibles, liability-tied deductibles, and 50%-of-Coverage-A deductibles are not the standard structure.

A percentage of Coverage A, typically 1% to 5%

BA flat $250 deductible applied to all named-storm losses regardless of dwelling limit

CA percentage of liability limits

DA deductible equal to 50% of Coverage A

Why this is the answer

Following Hurricane Sandy in 2012, New Jersey homeowners policies — both voluntary-market and FAIR Plan — began widely incorporating a percentage hurricane or named-storm deductible. These deductibles are calculated as a percentage of the Coverage A dwelling limit, typically falling in a 1%-5% range, and apply in place of the flat all-other-peril deductible when a triggering named storm causes wind damage. Flat $250 deductibles, liability-tied deductibles, and 50%-of-Coverage-A deductibles are not the standard structure.

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