Archive for February, 2012

Named Storm Endorsement

Named Storm Deductible Endorsement can be added at the insurance carrier’s discretion to property coverage policies. The application of the Named Storm Deductible Endorsement is used in conjuction with wind coverage deductibles. Typically in wind prone areas insurance carriers will use a percentage amount of the insured value instead of a spedific or flat dollar amount for damage caused by wind.

Because these percentage deductibles leave the insured with a much greater portion of the first dollar coverage amount, some carriers will offer the Named Storm Deductible to cover only named storms like the recent ones in Texas, ie. Hurricane Ike. This then means that wind damage from wind that was not named is then at the specific dollar amount deductible which is normally much better and in the insured’s favor.

Having the Named Storm Deductible Endorsement is becoming more of challenge to have as the projected losses from wind have become greater. Therefore, if an insured already has this endorsement it is in their favor to keep it, even when other insurance quotes may be considerably less. The best way to determine the degree of value of the Named Storm Deductible Endorsement is to calculate your specific values with both proposed deductibles and then decide which is more beneficial.

Keep in mind that this endorsement is being offered less and less so take this into consideration in your final decision.