Guides
Hurricane season and commercial property insurance: what to do before a storm
Wind is covered, flood is not, and deductibles can swallow the claim. A pre-season checklist, binding limits once a storm forms, and the 2026 season in context.
A standard commercial property policy covers wind damage from a hurricane, usually subject to a percentage named storm deductible, but it excludes flood and storm surge, and business income pays only after a delay and only for closures caused by covered damage. The Atlantic season runs from June 1 through November 30, and once a storm is named and threatens your area carriers stop binding new coverage, so the time to fix gaps is before it forms.
The 2026 season and the market
NOAA's May 21, 2026 outlook called for a below-normal Atlantic season, with a 55% chance of below-normal activity and 8 to 14 named storms. Its August 6 update lowered the range to 7 to 13 named storms and raised the below-normal chance to 75%, with a strengthening El Niño adding wind shear that tends to suppress storms (NOAA, August 6, 2026). NOAA's own caution applies: the outlook describes overall activity, not where storms land, and officials urge preparing for every storm.
A quiet forecast is not a safe year. As this guide was published on October 10, 2026, Hurricane Isaias had just made landfall near Destin, Florida, on the evening of October 9 as a Category 2 storm with 105 mph sustained winds. Early estimates from Gallagher Re (which includes NFIP claims), Marsh Re and Twelve Securis, collected by Artemis, were in the mid-single-digit billions of dollars of insured loss. Estimates move as claims arrive. If you are affected, go to filing business insurance claims after a hurricane or wildfire.
Pricing has softened going into this season, which gives buyers room to negotiate. Marsh's Global Insurance Market Index (July 23, 2026) put U.S. property rates down 13% in Q2 2026, and Guy Carpenter's U.S. property catastrophe rate-on-line index was down about 16% through July renewals, per Artemis. A large loss can reverse that quickly; see how reinsurance pricing flows into business insurance premiums.
What a commercial property policy does in a hurricane
The table describes the ISO commercial property forms (building and personal property form CP 00 10, causes of loss special form CP 10 30, and business income form CP 00 30). Carrier and manuscript forms differ, so read yours.
| Loss | Standard treatment |
|---|---|
| Wind damage to the building or contents | Covered peril under the special form, subject to the wind or named storm deductible |
| Rain coming through a roof or wall | Typically covered only if wind first creates an opening in the roof or walls |
| Storm surge, rising water, flood | Excluded; needs a flood policy. See Commercial flood insurance: NFIP limits and private options |
| Lost income while closed | Business income requires direct physical loss from a covered cause, with a 72-hour waiting period in CP 00 30 |
| Evacuation orders | civil authority coverage: when an order closes your doors only when other property nearby is damaged and access is prohibited |
| Power or water outage from off-site damage | Utility services coverage by endorsement; see utility service interruption |
| Code upgrades when rebuilding | ordinance or law coverage: paying for code upgrades after a loss by endorsement, with its own limits |
| Debris removal | Additional coverage with limits |
Two points catch owners. First, the named storm deductible is a percentage of insured values, not of the loss, so a modest claim can sit inside it; named storm deductibles: how percentage wind deductibles work explains triggers and per-location rules. Second, carriers can attach the roof surfacing endorsement CP 10 36, which values roof surfacing at actual cash value, so ask how yours is valued.
Pre-season checklist
- Update values. If your building limit is below current replacement cost, you may face a coinsurance penalty on top of the deductible. Rebuild costs after a regional storm run high because of demand surge. See the statement of values: what property underwriters need.
- Get the deductible in writing. Confirm the percentage, the values it applies to and whether it applies per location or across the schedule.
- Buy flood, and buy it early. NFIP non-residential limits are $500,000 for the building and $500,000 for contents, the policy generally takes effect 30 days after purchase, and NFIP flood does not cover business income. NFIP authorization currently runs to December 11, 2026 (FEMA), and a lapse stops new sales and renewals. Private and excess flood can raise limits. See NFIP reauthorization and what it means for business flood cover.
- Check business income and extra expense. Look at the limit, the period of restoration, extended business income and any dependent-property coverage for suppliers. See business interruption insurance: how business income coverage works.
- Check ordinance or law and roof valuation.
- Document mitigation. Roof deck attachment, impact-rated openings and a roof's age and covering can earn credits and change how catastrophe models: how insurers price hurricanes, quakes and fires treats the building. See mitigation credits and resilient construction for commercial property.
- Keep copies off site. Policies, declarations pages, broker and claim phone numbers, and photos of the property stored in the cloud.
- Know your market. If the voluntary market will not write wind, windstorm pools and residual plans exist in several coastal states with their own limits; see FAIR Plans and residual markets for commercial property and florida's commercial property insurance market.
When a storm forms
Carriers generally suspend binding of new coverage, limit increases and other mid-term changes once a named storm threatens a defined area, and they lift the restriction after it passes. The exact trigger and radius are the carrier's, not a legal standard. If you are weeks from renewal, finish the renewal early. If you need flood coverage with a storm in the Gulf, the 30-day NFIP waiting period means it will not respond to that storm.
In the 72 hours before landfall:
- Confirm your claim reporting number and your broker's emergency contact.
- Photograph or video the building, roof and contents, and note the date.
- Move stock, records and equipment above likely water lines and away from windows.
- Shut off utilities as local officials advise. Protect property as the policy requires, and keep receipts, because the standard form requires reasonable steps to protect covered property.
Worked example (hypothetical)
Say a Gulf Coast restaurant (Restaurant insurance) owns its building. Insured values are $2,000,000 for the building, $500,000 for contents and $600,000 of business income, a total of $3.1 million. The policy has a 2% named storm deductible, which on those values is $62,000. A hurricane peels part of the roof and rain damages the interior, causing $150,000 of wind damage. Surge also floods the ground floor, causing $300,000 more.
| Piece of the loss | Which policy | Notes |
|---|---|---|
| $150,000 wind and rain damage | Commercial property | Pays $150,000 less the $62,000 deductible, or $88,000 |
| $300,000 flood damage | Separate flood policy | Subject to its own deductibles and limits; NFIP covers $500,000 for the building and $500,000 for contents at most |
| Six weeks of lost income | Business income | Pays only for suspension caused by covered damage; how the closure is split between wind and flood damage is a common dispute |
The example is illustrative, not a prediction of how any policy would respond. Its point: one storm creates several claims under different forms, and the percentage deductible plus the flood gap can leave the owner far short of a full recovery.
Key takeaways
- Commercial property generally covers hurricane wind but excludes flood and surge, so a separate flood policy bought before the storm is the only protection against rising water.
- Named storm deductibles are percentages of insured value and can exceed the damage; know the number before the season starts.
- Carriers suspend binding when a storm threatens an area, and NFIP flood generally has a 30-day waiting period, so act early.
- NOAA forecast a below-normal 2026 season, yet Hurricane Isaias made landfall in Florida on October 9; a forecast does not predict landfall.
- Softer 2026 property pricing is an opportunity to buy higher limits or lower deductibles, but a large loss can reverse the market.