Glossary

Named storm deductible

A separate deductible, usually a percentage of insured value, for wind damage from a named hurricane or tropical storm, replacing the flat deductible.

Also called: hurricane deductible, windstorm deductible, named windstorm deductible, wind/hail deductible

Property insurers in hurricane-exposed areas typically replace the flat deductible with a percentage deductible for named storms. The percentage applies to the insured value of the damaged property, not to the loss. Say a building is insured for $2,000,000 with a 5% named storm deductible (a hypothetical). The deductible is $100,000 whether the damage is $120,000 or $900,000. Percentages of 1% to 5% are common, and higher in the most exposed coastal markets.

The wording decides when it applies. Some policies trigger on a storm named by the National Hurricane Center; others on a "hurricane" defined by wind speed, or on a named storm only while a watch or warning is in effect. Whether the deductible runs per building, per location or per occurrence, and whether it includes business income values, also varies. Wind damage that arrives during a named storm may carry the percentage even when the loss looks like ordinary roof damage.

Plan for it as a budget item. Because the base is insured value, a statement of values that overstates what you carry raises the dollar deductible, while one that understates it invites an insurance to value penalty. Some carriers sell deductible buy-back coverage. The guide on named storm and windstorm deductibles explains how to model it, and hurricane season and commercial property insurance: what to do before a storm covers the wider market.

Last reviewed October 10, 2026

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Related terms

Deductible The amount of a covered loss the policyholder bears before the insurer pays, set in the policy and subtracted from the loss. Statement of values A schedule listing each insured location with its building, contents and income values and construction details, used to rate and model a property program. Insurance to value Carrying a property limit that matches the full value of what you insure, so a loss is paid in full and no coinsurance penalty applies. Sublimit A lower cap on what a policy pays for one coverage, peril or item, set beneath the policy's overall limit. Catastrophe model Software that simulates thousands of hurricanes, earthquakes and other disasters against a portfolio of locations to estimate insured losses and odds.

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Related insurers

American Coastal Insurance St. Petersburg insurer of Florida condo associations, HOAs, apartment complexes and assisted living facilities, sold only through two MGAs since 2007.

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