A named-storm deductible is the amount you pay out of pocket before your homeowners policy pays for wind damage from a storm the National Hurricane Center has named. On most Louisiana policies it is a percentage of your dwelling coverage, not a flat dollar amount, which is why a homeowner with a "$1,000 deductible" can owe $6,000 or more after a hurricane. This guide shows how the deductible is calculated, what Louisiana law says about paying it more than once in a season, and what to check on your own declarations page before June 1.
Two deductibles on one policy
Most Louisiana homeowners policies carry two deductibles:
- All-other-perils deductible: a flat amount (often $1,000 to $2,500) for fire, theft, a burst pipe, or a non-named windstorm.
- Named-storm or hurricane deductible: a separate, usually larger amount that applies only when the loss comes from a storm system the National Hurricane Center has declared a named storm. Some policy forms trigger only on a hurricane; others on any named storm. The policy language controls. (La. R.S. 22:1337)
Louisiana requires insurers to disclose the named-storm deductible on a prescribed notice form, and for new policies effective after January 1, 2023, to ask the named insured to sign it. If you do not remember signing one, it is worth asking your agent for a copy. (source)
How a percentage deductible is calculated
The percentage applies to your dwelling coverage limit (Coverage A), not to the size of the claim.
| Dwelling limit (Coverage A) | 1% deductible | 2% deductible | 5% deductible |
|---|---|---|---|
| $200,000 | $2,000 | $4,000 | $10,000 |
| $300,000 | $3,000 | $6,000 | $15,000 |
| $450,000 | $4,500 | $9,000 | $22,500 |
Illustrative figures. Common percentages in Louisiana are 2%, 3%, and 5%; some carriers offer 1% or a flat-dollar named-storm deductible at a higher premium. (source) ▶ REVIEWER: confirm the deductible options offered by each appointed carrier before naming them.
Worked example: A Lakeview home insured for $300,000 with a 2% named-storm deductible loses part of its roof in a named hurricane. Repairs cost $22,000. The homeowner pays the first $6,000; the policy pays $16,000, subject to the policy's other terms. With a 5% deductible the same homeowner pays $15,000 and the policy pays $7,000.
Louisiana's one-per-season rule
Louisiana law protects you from paying a full named-storm deductible twice in one year. Under La. R.S. 22:1337, a separate named-storm or hurricane deductible "shall be applied on an annual basis to all named-storm or hurricane losses" during the calendar year. If a second named storm causes damage in the same year, the insurer may apply only the remaining portion of the named-storm deductible, or the all-other-perils deductible, whichever is greater. (source)
Illustrative example: Same $300,000 home, 2% deductible ($6,000), $1,000 all-other-perils deductible. Storm 1 in August causes $4,000 of damage: the homeowner absorbs all $4,000 (below the deductible) and $2,000 of the named-storm deductible remains. Storm 2 in October causes $10,000 of damage: the deductible is the greater of the remaining $2,000 or the $1,000 standard deductible, so $2,000, and the policy pays $8,000.
To get that credit you generally must report the first storm's damage, even if it was below the deductible, so the insurer has a record of it. ▶ REVIEWER: confirm the claim-reporting requirement with the carriers' forms and adjust wording.
What the deductible does not cover
- Flood and storm surge. Water rising from below is excluded from homeowners policies and is covered only by a separate flood policy (NFIP or private). A hurricane can produce both wind damage (homeowners policy, named-storm deductible) and flood damage (flood policy, its own deductible). Our flood insurance page covers the split.
- Wind-driven rain rules vary by policy: many forms cover interior water damage only if wind first creates an opening in the roof or walls. Ask how your policy reads.
What this means for New Orleans-area homeowners
Because Coverage A limits have risen with rebuilding costs, percentage deductibles have grown in dollars even where the percentage did not change. A Metairie home insured for $220,000 in 2019 and $340,000 today has seen its 2% deductible move from $4,400 to $6,800. Homes in Orleans, Jefferson, St. Bernard, and St. Tammany parishes sit in the highest wind zones, so most carriers writing here require a percentage named-storm deductible; the choice is usually which percentage, and whether a flat option is available at a price that makes sense.
What to check on your policy before hurricane season
- Find "Named Storm", "Hurricane", or "Windstorm" deductible on your declarations page and note the percentage and the dollar amount.
- Confirm what triggers it: named storm or hurricane only.
- Check whether it applies per calendar year (Louisiana law) and how the carrier applies the remaining-amount rule.
- Decide whether you could pay that amount from savings within a few weeks of a storm. If not, ask what a lower percentage or a flat deductible would cost.
- Ask about wind-mitigation or FORTIFIED roof credits, which may lower the premium and can make a lower deductible affordable.
- Keep dated photos of your roof and exterior each spring so a storm claim is easy to document.
