Property · Insurance Term
Named Storm Deductible (Hurricane Deductible)
Definition
A named storm deductible is a separate, usually larger deductible that applies to damage from a storm given a name by the National Weather Service, such as a tropical storm or hurricane. It is often a percentage of the building's insured value rather than a flat dollar amount.
In Plain English
Coastal property policies often apply one deductible for most losses and a much larger one for named storms. A 2% to 5% percentage deductible is common on coastal accounts. Because it is based on the insured value, the dollar amount can be large.
It differs from a wind and hail deductible, which applies to any wind or hail loss. Some policies have both: one for named storms and one for other wind and hail events. Your policy's wording decides which one applies, and it may apply per building, per location or per occurrence.
Some owners lower their share with a deductible buy-down, a separate policy that covers part of the large deductible. Lenders often cap the deductible they will accept, so check before you bind.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a hotel insured for $8,000,000 has a 3% named storm deductible. A hurricane causes $500,000 in damage. The deductible is $240,000 (3% of $8,000,000), so the policy would pay up to $260,000, subject to its other terms.
Why It Matters for Texas Property Owners
Named storm deductibles are common on properties near the Texas coast, including parts of the Houston area. In the 14 first-tier coastal counties and part of Harris County, the Texas Windstorm Insurance Association (TWIA) is the insurer of last resort for wind and hail when private insurers decline. TWIA has its own deductible rules.
What to Watch For
- Check whether your policy has a named storm deductible and how it is calculated.
- Do the math on your largest building so you know the real dollar amount.
- Ask whether it applies per building, per location or per occurrence.
- Plan cash reserves or a buy-down policy to cover the deductible.
Common Questions
What makes a storm a named storm?
Typically a storm named by the National Weather Service or National Hurricane Center, such as a tropical storm or hurricane. Your policy defines the term, so read its definition.
Can I lower my named storm deductible?
Sometimes, for a higher premium, or through a separate deductible buy-down policy. Availability depends on location and the market at the time.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write