New Jersey hurricane deductible rules

When the hurricane deductible applies in New Jersey and what it can be, summarised from official state sources.

New Jersey in brief

New Jersey's uniform hurricane deductible language applies only to a hurricane from which sustained hurricane-force winds of 74 mph or more have been measured in New Jersey by the National Weather Service. After Hurricane Irene the regulator ruled that no hurricane deductible could be applied.

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The 74 mph trigger

N.J.A.C. 11:2-42.7 requires uniform policy language for mandatory and optional hurricane deductibles. As quoted by the Department of Banking and Insurance, the deductible applies only in the event of a hurricane named by the National Weather Service from which sustained hurricane-force winds of 74 mph or greater have been measured in New Jersey, whether or not those winds reach the insured property.

Hurricane Irene

In Bulletin 11-16, dated August 29, 2011, the Commissioner found that the National Weather Service did not report winds in New Jersey meeting those criteria during Hurricane Irene, so no mandatory or optional hurricane deductible could be applied to Irene claims. Applying one was declared a violation of the regulation.

What a 2% deductible costs

A percentage deductible is applied to the dwelling coverage limit (Coverage A), not to the damage. On $300,000 of dwelling coverage a 2% deductible is $6,000; on $500,000 it is $10,000. Covered storm damage below that amount is paid by the homeowner.

Example 2% deductible: $300,000 of dwelling coverage gives $6,000; $500,000 gives $10,000.
A visual summary of the examples below. The text, applicable periods, sources and limitations on this page govern.

Read your own declarations page and deductible endorsement: the policy wording, together with state law, decides which deductible applies to a loss. This page summarises the official state guidance only.

Frequently asked questions

When can a New Jersey hurricane deductible apply?

Only for a hurricane named by the National Weather Service from which sustained hurricane-force winds of 74 mph or greater were measured in New Jersey, whether or not those winds reached your property.

Was the hurricane deductible applied for Hurricane Irene in New Jersey?

No. Bulletin 11-16 found the wind criteria were not met in New Jersey and said applying a hurricane deductible to Irene claims would violate N.J.A.C. 11:2-42.7.

Hurricane deductible rules in other states

Florida · New York · Louisiana · Mississippi · Rhode Island · Maryland · Connecticut · North Carolina · Texas · South Carolina · Massachusetts

All states · Hurricane deductible calculator

Sources & further reading

Figures read from the official sources below and checked: October 20, 2026. Worked examples are our calculations, not benefit awards.