Hurricane, Named-Storm and Wind/Hail Deductibles Explained

In coastal and hail-prone states, the deductible that matters most is often not the one on the front of the quote. Wind, hail and hurricane losses usually carry their own deductible, and it is often a percentage.

A percentage, not a flat figure

Along the Gulf and Atlantic coasts, in Florida and Texas, and in hail-prone areas, policies often carry a separate hurricane, named-storm or wind/hail deductible. It is usually a percentage of the dwelling amount - commonly 1% to 5%, sometimes higher - rather than a dollar figure.

The all-other-perils deductible, such as $5,000, still applies to everything else.

How to work it out

Multiply the dwelling amount by the percentage. A 2% deductible on a $300,000 dwelling is $6,000. A 5% deductible on the same home is $15,000. The figure grows with the coverage amount.

Hurricane, named storm or all wind

The wording matters. A hurricane or named-storm deductible applies only to storms of that kind. A wind/hail deductible applies to any wind or hail loss. Read which one the policy carries.

Why lenders care

Lenders cap the deductible, often at a dollar figure or a percentage of the dwelling amount. Many apply the cap to the wind deductible too. A 5% wind deductible can break a $5,000 cap even when the main deductible fits, so check both before closing.

When wind is excluded

In some coastal areas the property policy excludes wind and hail altogether, and wind is written on a separate policy. The lender will then want evidence of both.

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