If you own a home along South Carolina’s coast, you’ve probably noticed a second deductible buried in your homeowners policy — one that’s separate from your regular deductible and only kicks in during a hurricane. This is your hurricane, or “named-storm,” deductible, and it can catch homeowners off guard when a storm actually hits. Here’s how it works, how South Carolina regulates it, and how to plan for it financially.
What Is a Hurricane (Named-Storm) Deductible?
A hurricane deductible — sometimes called a named-storm or wind/hail deductible — is a separate, higher deductible that applies specifically to damage caused by a storm the National Hurricane Center has officially named. It replaces your standard “all other perils” deductible for that event only. Every other type of claim (fire, theft, a tree falling in a non-named storm) still uses your regular deductible.
How the Deductible Is Calculated
Unlike your everyday deductible, which is usually a flat dollar amount like $1,000 or $2,500, a hurricane deductible is almost always a percentage of your home’s insured (dwelling) value — typically 1% to 5% along the South Carolina coast, though it can run higher on older or higher-risk coastal properties.
Example: If your home is insured for $400,000 and your policy carries a 2% named-storm deductible, you would be responsible for the first $8,000 of hurricane damage before your insurance coverage begins to pay.
South Carolina’s Disclosure Rules
South Carolina regulates how these deductibles are communicated to policyholders. Under S.C. Code Regs. 69-56, insurers writing homeowners policies with a hurricane, named-storm, or wind/hail deductible must clearly disclose that the deductible exists and provide a worked example of how it applies in dollars — not just as a percentage. If your declarations page only shows a percentage and you’re not sure what that means in real dollars, that’s a question worth asking your agent directly.
Named-Storm Deductible vs. Your Flood Deductible
This is where many homeowners get tripped up. Your hurricane deductible on your homeowners policy applies only to wind and wind-driven rain damage. If a storm also causes flooding or storm surge, that damage is handled entirely separately, under your flood insurance policy, which has its own deductible. Wind and flood are two different perils, two different policies, and two different deductibles — even when the same hurricane causes both. See our Flood & Hurricane Insurance guide for how the two coverages work together.
How to Prepare Financially
Because a named-storm deductible is percentage-based, it can add up to thousands of dollars more than homeowners expect. A few ways to prepare:
- Know your actual dollar exposure. Ask your agent to convert your percentage deductible into a real dollar figure based on your current dwelling coverage.
- Build a dedicated reserve. Many coastal homeowners keep a separate savings buffer sized to their hurricane deductible, since it’s due before repairs can start.
- Compare deductible options at renewal. A lower percentage deductible raises your premium; a higher one lowers it. The right balance depends on your cash reserves and risk tolerance.
- Review annually as your home’s value changes. Since the deductible is a percentage of your dwelling coverage, your dollar exposure changes anytime your coverage amount is adjusted.
Frequently Asked Questions
Does my hurricane deductible apply to every storm?
No — only to storms officially named by the National Hurricane Center. Damage from an unnamed storm, a regular thunderstorm, or a random wind event is typically covered under your standard deductible instead.
Is my hurricane deductible the same as my flood deductible?
No. They’re separate deductibles on separate policies. Your homeowners policy’s named-storm deductible covers wind damage; a completely separate flood insurance policy, with its own deductible, covers storm surge and flooding.
Can I get rid of my hurricane deductible?
Not usually — most South Carolina coastal carriers require a named-storm deductible as a condition of writing wind coverage in high-risk areas. What you can typically control is the percentage, which affects both your deductible and your premium.
How do I find out my exact hurricane deductible in dollars?
Check your declarations page for the percentage, then multiply it by your dwelling coverage limit — or simply call us and we’ll calculate it for you along with your options at renewal.
Coastal South Carolina homeowners face some of the most complex deductible structures in the country, and the fine print matters. If you’re not sure what your named-storm deductible actually costs you in dollars, or you want to compare how different deductible levels affect your premium, we’re happy to walk through it. Learn more on our Home Insurance page, or call us at (843) 471-2621.