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.
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.