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Named Storm Deductible Calculator
A named storm deductible is a separate, higher deductible that applies only when a formally named storm causes the damage. It is a percentage of your yacht’s insured value, not a flat amount: multiply the insured value by the deductible percentage. A $500,000 yacht with a 5% named storm deductible carries a $25,000 deductible — you pay the first $25,000 of hurricane damage yourself.
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How the named storm deductible is calculated
The formula is insured value × named storm deductible percentage. Unlike a flat standard deductible (often around $1,000–$5,000), it scales with the value of the boat, so the same 5% costs far more on a larger yacht.
| Insured value | Named storm deductible | You pay out of pocket |
|---|---|---|
| $250,000 | 2% | $5,000 |
| $250,000 | 5% | $12,500 |
| $500,000 | 2% | $10,000 |
| $500,000 | 5% | $25,000 |
| $1,000,000 | 5% | $50,000 |
| $1,000,000 | 10% | $100,000 |
Frequently asked questions
- What is a named storm deductible?
- A named storm deductible is a separate, higher deductible that applies only when damage is caused by a storm that has been formally named. It is set as a percentage of your yacht’s insured value rather than a flat dollar amount, so it scales with the value of the boat, and it replaces your standard deductible for that claim.
- How is the named storm deductible calculated?
- Multiply the insured value of the yacht by the named storm deductible percentage. A $500,000 yacht with a 5% named storm deductible carries a $25,000 deductible: you pay the first $25,000 of hurricane damage yourself, and the insurer pays the rest of the covered loss.
- How does it differ from my standard deductible?
- The standard deductible is usually a flat amount (often around $1,000 to $5,000) and applies to everyday losses. The named storm deductible is a percentage of insured value and applies only to named-storm damage, so it is typically many times larger: a $500,000 yacht at 5% is $25,000, against a $1,000 standard deductible.
- Can I lower my named storm deductible?
- Often yes. Many insurers will write a lower percentage (for example 2% instead of 5%) in exchange for a higher annual premium. Whether that trade is worth it depends on how many years of extra premium it takes to equal the deductible you would save on a single claim.