PLMAmedium
On an MPIUA FAIR Plan dwelling policy for a Cape Cod home, what does a 5% hurricane deductible mean?
AMPIUA pays only 5% of any named-storm loss and the insured retains the remaining 95% of the actual loss amount itself
The insured retains 5% of Coverage A dwelling limit before MPIUA pays a named-storm loss
CThe premium is reduced 5% if a named storm is forecast
DMPIUA recovers 5% from NFIP for each storm-surge loss
Why this is the answer
MPIUA applies a percentage hurricane deductible (typically 1%, 2%, or 5%) to named-storm losses on coastal Massachusetts dwellings. The deductible is calculated against Coverage A — the dwelling limit — not the loss amount. On a $400,000 dwelling, a 5% deductible equals $20,000 of retention before MPIUA pays. The deductible is triggered when the National Weather Service names a tropical storm or hurricane affecting Massachusetts, per policy definitions.
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