Named Storm
Deductible
Named Windstorm
Deductible
Catastrophe
Deductible
Hurricane Andrew and
the many subsequent hurricanes have created restrictions in potential hurricane
areas, particularly on the East Coast of the
In an effort to
provide affordable insurance, Underwriters increase the applicable deductibles
(usually for Hull & Machinery and Personal Effects) for losses caused by Named Storms, Named Windstorms and/or Catastrophes to cover
partial and total losses.
The increase,
depending on your policy wording, usually doubles the deductibles or applies a
certain percentage.
For example; if the
clause doubles the deductible(s) and your deductible is $1000, then claims
arising from a Named Storm, Named Windstorm and/or Catastrophe are subject to a
deductible of $2000.
Some policies apply a
minimum percentage to Named Storm, Named Windstorm and/or Catastrophe losses.
If your policy has this provision then a deductible of 5% or 10% (usually of
the
For example; if the
clause applies a 10% deductible and your vessel is insured for $100,000 then a
deductible of $10,000 (10% of $100,000) would apply to Named Storm, Named
Windstorm and/or Catastrophe losses.
Some policies exclude
losses from Named Storms, Named Windstorms and/or Catastrophes. Claims
resulting from Named Storms, Named Windstorms and/or Catastrophes would not be
covered.
Usually deductibles
for losses under the policy sections covering Liability, Protection &
Indemnity, Uninsured Boaters, Underinsured Boaters and Medical Payments are not
affected by Named Storms, Named Windstorms and/or Catastrophes.
A Named
Storm or Named Windstorm is a storm, cyclone, typhoon, atmospheric
disturbance, depression or other weather phenomena designated by the US
National Weather Service and/or the US National Hurricane Center and where a
number or name has been applied. "Hurricane Andrew", "Tropical
Storm Mitch", Tropical Depression Number Seven" are examples of named
or number weather systems.
A Catastrophe
is an event where a (usually) natural disaster such as an avalanche, mudslide,
flood, volcanic eruption, tsunami, earthquake, et cetera occurs and is assigned
a disaster number or name or a State of Emergency is called by the authorities.
The Named Storm,
Named Windstorm or Catastrophe deductible clause gives the property or boat
owner plenty of incentive to protect property and with the early warning
systems in place such as television, radio, newspaper, internet, weather radio
bands, radio nets and other sources that should be diligently and regularly
monitored before, during and after the applicable season; there should be
plenty of time to implement your "Hurricane Plan" and protect your
property, insured or not.
IMPORTANT NOTE: The terms and
descriptions of terms on this page or these pages is not meant to replace or
define any policy wording or term or the limit or enhance any meaning of any
term(s) or conditions of any policy of insurance. These comments are just that,
comments and nothing more. They are provided for you to refer to, so you can
ask your insurer for an exact meaning or explanation of the coverage you own or
are contemplating purchasing. All policies are subject to exclusions and
revisions of meanings of standard terms. Your policy covers you, and you need
to ask questions now- before any loss, to understand what you have. We are not
lawyers, and we do not provide legal opinions. We are Insurance Brokers and we
provide guidance and try and help you understand coverages and coverage issues.
READ YOUR POLICY, a boring but informative task and ask questions. Use this
document to help you ask those questions and learn from your Agent or Broker.
He or she is there to help you, if they don’t do the job, find another one.