What is the standard deductible for Citizens homeowners policies, excluding mobile homes?

The standard deductible for Citizens homeowners policies, excluding mobile homes, is indeed $1,000 for all other perils and 2% for hurricanes. This structure is designed to align with the general practice in the insurance industry, where homeowners are often subject to two types of deductibles based on the nature of the claim.

All other perils typically cover a broader range of risks such as fire, theft, and vandalism, and a deductible of $1,000 is commonly seen as a reasonable amount that policyholders need to cover out-of-pocket before insurance kicks in. The 2% hurricane deductible is specific to damage caused by hurricane winds, and it reflects the higher risk associated with these types of natural disasters in Florida, taking into account variable property values. This percentage is applied to the insured value of the home, making it scale according to the homeowner’s coverage limits.

Recognizing the distinct nature of hurricane-related damage and the standard practices in the industry helps clarify why these deductibles have been set at these specific thresholds for Citizens policies.