RICHMOND – In the aftermath of Hurricane Isabel, the State Corporation Commission’s (SCC) Bureau of Insurance reminds Virginia consumers that their homeowners insurance policy may contain a special deductible for wind or hurricane losses. This deductible is applied separately from any other deductible on the homeowners policy.

     Some insurance companies automatically include a wind or hurricane deductible, while others make this deductible available at the option of the policyholder. The Bureau of Insurance encourages policyholders to check with their insurance company or agent to find out if their homeowners policy contains a special deductible for wind or hurricane losses.

     Wind or hurricane deductibles may be written as a flat amount, such as $1,000. Or, they can be applied to the loss as a percentage of the insurance coverage on the dwelling. For example: assume a hurricane causes damage amounting to $3,000 and the dwelling is insured for $100,000. If the policy has a two percent hurricane deductible, the insured would pay $2,000 and the insurance company would pay $1,000.

     It is important to note that much hurricane damage comes from flooding, not high winds. Homeowners insurance policies issued in Virginia generally do not provide coverage for damage to your home and belongings due to floods. However, the federal government does sell insurance for direct flood and flood-related damage to residents of eligible communities through its National Flood Insurance Program (NFIP).

     If you have already purchased a flood policy, and you are not satisfied with the claims adjuster’s handling of your claim, you should contact the NFIP toll-free at 1-800-638-6620 if your flood policy was issued by the NFIP. If your flood policy was issued by an insurance company, you should contact the insurance company or your agent if you have questions regarding the handling of your claim.

     In addition to homeowner’s coverage, you may also want to find out if your automobiles and other vehicles are covered in the event of a hurricane or other windstorm.

     The key is to be prepared. Plan ahead and know what to do if a disaster strikes your home or business property. The Bureau of Insurance offers free consumer guides for homes and businesses that answer many questions about settling disaster-related property insurance claims.

     The SCC is located in the Tyler Building at 1300 East Main Street in downtown Richmond. Correspondence may be mailed to the Bureau at P. O. Box 1157, Richmond, Virginia 23218.