Thousands Deal With Expensive Double Insurance Deductibles
In this Weekly Insurance Claim Update, we take a look at how double insurance deductibles are hurting thousands of homeowners in north Texas after back-to-back spring hail storms. Damage was so extensive there is now a backlog of claims.
Hail Damage Multiplies
The two storms hit three weeks apart, one in late March and the second on . The second storm sent softball-sized hail hurling through roofs and windows, damaging many homes a second time. Local television news reports estimated that 80 percent of the town of Wylie's 15,000 homes were damaged. Collin, Rockwall and Denton counties were all affected by the same weather system. Many homeowners had already filed claims for the first storm, but repairs had not yet started before the second round of severe weather.
According to the Insurance Council of Texas, the storm created $700 million in damages in Plano, and the storm caused $300 million in Wylie. The damages are especially challenging for the Texas homeowner who has a policy based on percentage deductibles instead of a by dollar amount. A one percent deductible on a $200,000 house means a $2,000 outlay for the homeowner. These high deductibles are a hardship for some consumers who face a separate deductible for each storm.
A representative from Texas Watch, a citizen advocacy group, recommends that consumers check the language in their policy. Usually it's a requirement that two separate claims each require a deductible. If you are having an issue with your insurance company over hail claims, we can help. Contact us for assistance.