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NEW YORK, June 10 - While Tropical Storm Arlene threatens parts of Alabama, Louisiana, Florida and Mississippi, the ºÚÁϲ»´òìÈ Information Institute (I.I.I.) suggests that all coastal homeowners review their insurance policy to see what coverages and deductibles apply.

A standard homeowner policy deductible is often $500 or $1,000 for damage claims, however, once the storm is declared a hurricane, many homeowners will pay higher deductibles. Hurricane deductibles may range from one to 15 percent of the replacement cost of rebuilding a home, depending on many factors that differ from state to state, and sometimes from insurer to insurer.

These factors include the home's insured value and the "trigger" - how strong the hurricane would have to be for the deductible to go into effect. A two percent deductible, for example, on a home with an insured value of $100,000 would be $2,000. Rates for homes along the coast can be about 20 percent higher than inland properties.

Insurers in 17 catastrophe-vulnerable states may now use percentage deductibles on homeowners insurance policies as opposed to a dollar deductible, to limit their exposure to catastrophic losses from natural disasters. Percentage deductibles are sometimes mandatory and may apply to an entire state or just part of it.

More than 68 million people now live in hurricane-vulnerable coastal areas of the United States, up from 52 million in 1970; a 31 percent increase over 30 years. Expensive homes and commercial structures now have an insured property valued at more than $2 trillion, noted the I.I.I.

Along with greater buildup along coastal areas, the severity of catastrophes has increased dramatically in the last decade. Since 1990, insurers have paid out more than $100 billion in catastrophe-related losses - or about $700 million per month (1). Catastrophes include well-known events such as last year's quartet of hurricanes and the Northridge earthquake, but also hundreds of smaller disasters associated with tropical storms, tornados, wildfires, hail, ice and snow.

"In the face of increased development along the coast, these deductibles are a way of dealing with this risk but keeping insurance available and affordable," says I.I.I.'s consumer spokesperson, Jeanne M. Salvatore.

Other Things to Consider

While standard homeowners, renters and business insurance policies cover wind and rain damage from hurricanes, they do not cover flooding, according to the I.I.I. Flood insurance is available through the National Flood ºÚÁϲ»´òìÈ Program (NFIP), a division of the Federal Emergency Management Agency. Flood insurance for homes or small businesses can be purchased directly from the federal government or through insurance companies or agents.

The "comprehensive" portion of automobile insurance policies covers losses due to flooding, but not all drivers purchase comprehensive coverage. It generally is included in policies protecting newer cars but tends to be dropped as a car's market value declines.

To learn more about how to insure against a hurricane, contact your insurance agent or company representative. More information on wind and hurricane deductibles along with home insurance information can be found on the I.I.I.'s website, .

(1) Excludes the impact of the September 11, 2001 terrorist attack.