PlumBot: Bot: Creating new article from JSON

2026-03-12T00:06:06Z

Bot: Creating new article from JSON

New page

🌀 '''Named-storm deductible''' is a special [[Definition:Deductible | deductible]] provision in [[Definition:Property insurance | property insurance]] policies that applies a separate — and typically much larger — deductible to losses caused by storms that have been officially named by a meteorological authority such as the National Hurricane Center. Unlike a standard flat-dollar deductible, a named-storm deductible is usually expressed as a percentage of the [[Definition:Insured value | insured value]] of the property, commonly ranging from 1% to 5% or more, meaning the policyholder's out-of-pocket share can be substantial on high-value structures.

⚙️ The deductible triggers when damage results from a storm that has received an official name — most commonly a hurricane or tropical storm — and it applies per occurrence for that event, distinct from the policy's standard [[Definition:Deductible | all-other-perils deductible]]. For a [[Definition:Homeowners insurance | homeowner]] with a dwelling insured for $500,000 and a 2% named-storm deductible, the first $10,000 of storm damage falls on the policyholder before the [[Definition:Insurance carrier | insurer]] begins to pay. [[Definition:Underwriting | Underwriters]] and [[Definition:Actuarial science | actuaries]] use [[Definition:Catastrophe model | catastrophe models]] to calibrate these percentages based on geographic exposure, construction type, and historical storm frequency. State [[Definition:Insurance regulation | insurance regulators]] often mandate specific disclosure requirements so that buyers understand the financial impact before binding coverage.

📌 Named-storm deductibles emerged as a direct response to the escalating [[Definition:Catastrophe loss | catastrophe losses]] from hurricanes in coastal states like Florida, Texas, and the Carolinas. By shifting a meaningful portion of high-frequency, high-severity wind losses back to the policyholder, insurers can continue to offer coverage in storm-prone regions without facing unsustainable [[Definition:Loss ratio (L/R) | loss ratios]]. For policyholders, the deductible is a trade-off: it reduces [[Definition:Premium | premium]] costs but requires financial preparedness for significant out-of-pocket exposure when a named storm strikes. Understanding this provision is essential for coastal property owners and the [[Definition:Insurance agent | agents]] who advise them, particularly during [[Definition:Hurricane season | hurricane season]] when the stakes become immediate.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Deductible]]
* [[Definition:Hurricane deductible]]
* [[Definition:Catastrophe model]]
* [[Definition:Windstorm insurance]]
* [[Definition:Homeowners insurance]]
* [[Definition:Catastrophe loss]]
{{Div col end}}

Definition:Named-storm deductible - Revision history

PlumBot: Bot: Creating new article from JSON