Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Florida Law and EthicsEasy
A Florida 2-20 General Lines Agent is reviewing a client's homeowner's policy following a significant weather event. The client's policy includes a 'hurricane deductible.' According to Florida law, how often may a hurricane deductible be applied to a single insured property within a calendar year?
- AEach time a hurricane warning is issued for the area.
- BOnce per calendar year.
- CTwice per calendar year for named storms.
- DOnce per hurricane event.
Show answer & explanationAnswer & explanation
Correct answer: B. Once per calendar year.
Under Florida law (FS 627.701), the hurricane deductible can only be applied once per calendar year to a single insured property. This means that if a property is affected by multiple hurricanes in the same calendar year, the deductible will only be applied for the first hurricane event.
Why the other options are wrong
- A. The application of the deductible is tied to actual damage from a hurricane, not merely the issuance of a warning.
- C. This is incorrect; the limit is once per year, regardless of the number of named storms.
- D. While it's triggered by a hurricane event, the deductible applies only once per year, not per event.
Florida Hurricane Deductible Frequency
Florida law limits the application of hurricane deductibles to once per calendar year for a single insured property, regardless of how many hurricane events impact the property.
- Applies to residential property insurance policies.
- Triggered by a hurricane event.
- Can only be applied once per calendar year.
- Based on Florida Statute 627.701.
- Designed to limit the insured's out-of-pocket costs for multiple storms.
Memory trick: One calendar year, one hurricane deductible hit.