Named Storm Deductible

A named storm deductible is a separate deductible on a homeowners policy that applies only when damage is caused by a hurricane or tropical storm that the National Weather Service has officially named. It is distinct from the standard all-other-perils deductible (typically a fixed dollar amount) and from the wind/hail deductible (which applies to non-named-storm wind events).

How is a named storm deductible calculated?

Named storm deductibles are expressed as a percentage of the dwelling coverage amount, commonly 2 percent to 5 percent. On a $500,000 home with a 5 percent named storm deductible, the homeowner pays $25,000 out of pocket before any named-storm claim is paid. At 2 percent on the same home, the out-of-pocket cost is $10,000, still well above what most people budget for a single weather event.

For example, a coastal homeowner in Savannah with $400,000 in dwelling coverage and a 3 percent named storm deductible would owe $12,000 before their carrier pays a single dollar toward hurricane damage.

Which Georgia counties typically carry named storm deductibles?

In Georgia, named storm deductibles are most common in the six coastal counties: Chatham (Savannah area), Bryan, Liberty, McIntosh, Glynn (Brunswick area), and Camden (St. Marys area). Inland counties typically do not carry named storm deductibles, though some carriers apply them statewide based on their assessment of hurricane-related weather patterns across Georgia. Homeowners in the Atlanta metro, Macon, and Augusta sometimes encounter them and are caught off guard because they do not think of themselves as living in a hurricane zone.

What actually triggers the named storm deductible?

The trigger is the National Weather Service officially naming the storm. Coverage documents typically define a window: the deductible applies from the moment of naming until 24 to 72 hours after the storm is downgraded or exits the area. A tropical storm that strengthens to a named hurricane on approach and then weakens before landfall can still activate the named storm deductible, even if the wind at your address never reached hurricane force.

For example, a homeowner inland in Macon who loses a portion of their roof to winds from a named tropical storm could be subject to the percentage deductible rather than their standard all-other-perils deductible, even though the storm was downgraded before it arrived.

How does my deductible grow as my home value increases?

Because the deductible is tied to your dwelling coverage limit rather than a fixed dollar amount, it grows automatically as your home’s insured value increases at renewal. A homeowner who rebuilt their dwelling limit from $400,000 to $600,000 over several policy years now carries a proportionally larger named storm exposure without any explicit change to the deductible percentage itself.

How can I understand my full named storm exposure?

Knowing your deductible percentage and the dollar figure it translates to at your current dwelling limit is the starting point. A free coverage review with Olive Insurance Services, LLC can confirm your current percentage, translate it to a dollar figure at today’s dwelling limit, and identify whether any policy options can reduce the exposure. See also homeowners insurance options available through Olive Cover.