Deductibles serve several purposes. They provide some premium relief for the insured. They make insureds less likely to file smaller claims because either damage falls within the deductible, or is so close to it that the policyholder would rather not file the claim. Sometimes, deductibles help to motivate an insured to change behavior.
This hurricane season, the concept of a deductible will be top of mind for Florida insureds because three hurricanes have made landfall in Florida this season and the Tampa Bay area has suffered two direct strikes. This means some people could have to deal with the prospect of multiple hurricane deductibles if their house or building was damaged twice.
Since 2006, Florida law requires insurers of residential buildings to use a calendar year hurricane deductible. The change was made following the 2004 and 2005 hurricane seasons when eight storms made landfall in the Sunshine