A relatively inexperienced lawyer from another law firm asked in an open forum whether a category 5 hurricane mandated that no hurricane deductible could be applied and if hurricane Michael policyholders could get a return on their hurricane deductible. Corey Harris has been involved in hurricane work with our company since 2005. He quickly responded that the deductible will be returned only if the Easter bunny takes a present.
I then learned that a public adjustment of a million dollar case called our office asks for the same thing. He claimed that a client stated that any lawyer considered that the authorities did not want to classify Hurricane Michael as a category 5 because it meant that hurricane deductions could not be applied. We told him that this is not true and that the client's alleged lawyer calls us to learn hurricane insurance law.
It is a rumor that policyholders do not have a hurricane deductible if the hurricane is classified as category 5.
I wish it was different. I'll be back in Panama City on Tuesday after Easter. From what I've seen, the restoration is going slowly for many reasons. Not enough money from insurance companies is really one of the guilty. Building permits and the demand for building are another. Our local office has slowed down on construction. It has nothing to do with insurance, but the other issues.
Category 5 hurricanes are the freaks of nature. The wind speed really destroys structures and causes many subtle attachment damage, even if they are not completely destroyed, which often goes unnoticed and named.
This rumor may have begun to discuss how deductibles are absorbed upon total loss or loss, the damage exceeding the political limits. These are very common situations in category 5 hurricanes. Hence, hurricane Michael Policyholders should read two blogs I wrote nine and ten years ago on this topic:
Subtract deductible from repair or replacement values - not from policy limits
When calculating insurance payments, take deductible from the repair value and not the policy limits
Rumors and error information are superfluous for hurricanes. If someone wants some experienced answers, you can use the search function at the top of our blog. Otherwise, do not hesitate to call my cell phone at (813) 695-8733.
Happy Easter! Let us always remember to count our blessings.
Song of the Day