Annual Deductibles for Hurricane Claims in Louisiana
Hurricane season is in full swing in Louisiana. Communities along the bayou, river parishes, and coastal cities often prepare for multiple hurricanes or named storms each year.
Because of this risk, many homeowners want to understand how their insurance deductibles work. In particular, policyholders often have questions about the Louisiana Homeowners’ Hurricane, Named-Storms, and Wind and Hail Deductible Law (La R.S. 22:1337) and how it applies when more than one storm causes damage in the same year.
At Cueria Law Injury Lawyers, we want Louisiana homeowners to clearly understand how this law works. With the right legal guidance, you can make sure your home and belonging remain properly covered after multiple storms.
Understanding the Legislative Intent
Hurricane and named-storm deductibles can be extremely high. In some cases, these deductibles reach up to 5% of a home’s insured value.
Because repeated storms can cause serious financial strain, several states have passed laws to protect homeowners from paying full hurricane deductibles multiple times in one year. Louisiana followed this approach after devastating hurricane seasons.
Louisiana’s Annual Hurricane Deductible Law
After Hurricanes Katrina and Rita struck Louisiana just weeks apart in 2005, lawmakers recognized the need for stronger consumer protections. As a result, the Louisiana Legislature passed the Annual Deductible Law.
Under La R.S. 22:1337, insurers must apply hurricane or named-storm deductibles on an annual basis, rather than resetting the deductible after each storm in the same calendar year.
In simple terms, once a hurricane or named-storm deductible is applied, any remaining portion carries forward to subsequent storms that year. The homeowner does not start over with a new hurricane deductible each time.
How the Deductible Law Woks in Practice
In short, Louisiana law allows insurers to apply any unused portion of the first hurricane or named-storm deductible to later storms in the same year. However, insurers must compare that remaining amount to the standard “other perils” deductible and apply whichever is greater.
This rule prevents homeowners from paying full hurricane deductibles multiple times during one hurricane season.
What Is an Insurance Deductible?
An insurance deductible is the amount you must pay out of pocket before your insurance coverage applies. In other words, it is your share of the loss.
If your total damage does not exceed your deductible, your insurance company does not issue payment.
How Much Is a Typical Storm Deductible?
Most homeowners’ insurance policies include a standard “other perils” deductible. These usually range from $500 to $2,000.
Hurricane or named-storm deductibles, however, are often calculated as a percentage of the home’s insured value. These percentages typically range from 1% to 5%, which can result in much higher out-of-pocket costs.
Where Can You Find Your Deductible?
You can usually find your deductible on the Declarations Page of your insurance policy. In some cases, it may also appear on a policy summary page.
Why Louisiana’s Deductible Law Is Necessary
Before Louisiana passed this law, insurers began shifting more risk to homeowners after major storms like Hurricane Andrew and Hurricane Katrina. They introduced separate hurricane and named-storm deductibles that applied to each storm event.
As a result homeowners faced massive out-of-pocket expenses after multiple storms. Recognizing this unfair burden, the Louisiana Legislature passed House Bill 333 to protect policyholders from repeated deductible penalties.
Example of How the Law Protects Homeowners
Imagine a homeowner with:
- $350,000 in coverage
- A standard deductible of $750
- A hurricane deductible of 4% ($14,000)
After the first storm, the insurer estimates $10,000 in damage. Because the damage does not exceed the hurricane deductible, the insurer pays nothing.
Later that year, a second storm causes $7,500 in damage. Under Louisiana law, the remaining $4,000 from the first deductible applies to the second claim. Because this amount is greater than the standard deductible, the insurer pays the remaining $3,500.
Without this law, the homeowner would have received no payment for either storm.
Why You Should Speak With an Attorney
Insurance policies can be complex, especially when multiple storms occur in the same year. Deductible rules are not always clearly explained, and insurers may apply the incorrectly.
An experienced attorney can review your policy and help protect your rights after storm damage.
At Cueria Law Injury Lawyers, we are committed to helping homeowners recover after hurricanes and named storms. Our team works to ensure insurers apply deductibles fairly and according to Louisiana law.
Contact Us for Help After Storm Damage
The team at Cueria Law Injury Lawyers is ready to help. Call today o fill out your online form to request a free consultation.
The sooner you reach out, the sooner we can begin working to protect your rights and pursue the compensation you deserve.
