Glossary
Named storm deductible, defined
A separate, usually larger, amount a homeowner absorbs when the loss comes from a hurricane or tropical system that a weather service has officially designated. It is triggered by the event, not the type of damage: wind, rain and flying debris from that system are all settled against the higher figure.
In practice
It matters mainly in coastal and Gulf states, and it is usually expressed as a fraction of the dwelling limit rather than a flat sum, so it scales with the house. In Arizona, Nevada, Utah and Idaho the more common cousin is a wind and hail deductible, which is triggered by the peril rather than by a designated event; monsoon microbursts and the remnants of Pacific storms are not named systems in the sense the endorsement uses. Anyone buying a second home in a coastal market should read the trigger carefully. Some forms start the higher figure the moment a watch is issued and end it a set time after the last advisory; others require an actual hurricane declaration. The analysis converts the fraction into dollars so the client sees what would come out of pocket.
A worked example
Suppose a coastal condo is insured with a $500,000 dwelling limit, a $2,500 standard deductible, and a named storm deductible of five percent. A named hurricane tears off part of the roof and causes $60,000 of damage. The claim is settled against the $25,000 storm deductible, so the policy pays $35,000. Had an unnamed thunderstorm done the same damage, the $2,500 figure would apply and the policy would pay $57,500. Hypothetical figures.
Applies to: Home Insurance