Insurance term · plain English
Deductible (recoverable vs. non-recoverable)
Recoverable deductibles can be reduced or eliminated through specific endorsements or settlement structure; most are simply your share of every loss.
What it actually is
A deductible is the dollar amount you pay before the carrier pays anything. Standard HO-3 deductibles run $1,000–$5,000, sometimes higher in coastal regions. Some policies use a wind/hurricane deductible expressed as a percentage of Coverage A ($400k dwelling × 2% = $8,000 deductible just for hurricane claims). "Recoverable deductible" usually refers to deductibles that the contractor can negotiate down via the bid structure, or that an endorsement reduces. Some carriers offer a disappearing deductible after multiple claim-free years.
Why it matters for a claim
On a $14,000 water loss with a $2,500 deductible, you net $11,500. On a $14,000 wind loss with a 2% hurricane deductible on a $400k dwelling ($8,000), you net $6,000. Most homeowners don’t realize their wind deductible is a percentage until they file. Auditing the declarations page catches this before — not after — the storm.
Example
Florida HO-3 with $2,500 AOP (all-other-perils) deductible and a 5% hurricane deductible. Coverage A is $500,000. A hurricane drops a tree on the roof, $30,000 in damage. Hurricane deductible: $25,000. Net to the homeowner: $5,000. If the same tree fell in a non-hurricane wind event: deductible $2,500, net $27,500.
Apply this to your actual policy.
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