Tropical Storm Arthur existed for about twelve hours. It reached tropical storm strength on the morning of 17 June 2026, came ashore near Galveston that afternoon with maximum sustained winds of 45 miles an hour, and was post-tropical by night. Nine thousand customers lost power in South Texas, roughly two thousand each in Galveston and the Texas City-La Marque area, and the storm surge ran to about three feet along the Texas coast. Then it sat over Louisiana and dropped 29.06 inches of rain on Cottonport in a day, which is a state record. Arthur J. Gallagher put the damage above a billion dollars.[1]
It was not a hurricane. Nothing in 2026 has been. As of this week the Atlantic season has produced seven named storms and zero hurricanes, and on 11 September it passed the latest date for a season’s first Atlantic hurricane in the satellite era, the first season since 1914 to get this far without one.[2] A landlord whose property policy carries a hurricane deductible has not paid one this year. A landlord whose policy carries a named storm deductible paid one in June, and the tenants are about to find out.
The two words are not synonyms, and the gap between them is where the money is. A named storm deductible applies to any storm the weather service names, which includes tropical depressions.[3] The trigger is usually not landfall either. It runs from some period before the storm is named to some period after it is downgraded, and a common formulation applies the deductible to loss occurring within 24 hours before the naming and up to 72 hours after the downgrade.[3] On the Texas and Louisiana coast the deductible is normally a percentage rather than a dollar figure, and in the first wind tier the percentage is commonly 5 percent.[3]
Five percent of what, though. That is the question that decides everything downstream, and the answer is not “5 percent of the damage.”
What the percentage is a percentage of#
Take a grocery-anchored center in Galveston County. 120,000 square feet, statement of values on file with the insurer showing $34,000,000 of building and $4,000,000 of rental value, so $38,000,000 in total insured value. The percentage deductible applies to property and business income values together, not to property alone, so the deductible is 5 percent of $38,000,000. That is $1,900,000. Those figures are mine, chosen to be ordinary rather than extreme; the mechanism does not depend on them.
Arthur tears up part of the roof, takes out three storefronts, and drives water into eight units. The repair estimate comes back at $900,000.
The insurer pays nothing. Not a reduced amount. Nothing, because the loss never reached the deductible.
Worse, the base the percentage runs against is itself negotiable and usually not negotiated. It can be the values of the property actually claimed, or the whole location’s values whether or not a claim is made for all of it, or every value on the statement of values regardless of where in the country the property sits.[3] A portfolio landlord on a blanket policy can find that the deductible for damage to one Texas center is computed on values that include buildings in three other states. The deductible endorsement is not in the lease file. It sits in a policy that nobody in the leasing group ever sees.
There is one more thing about that $38,000,000. The AIR CRE form requires the landlord’s property policy to carry “inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located."[4] The insured value ratchets up with CPI every year, and the deductible, being a percentage of it, ratchets up with it. That index is the one with a hole in it now: the October 2025 CPI-U was never published, so the inflation guard on a policy renewing off an October measurement has the same missing-month problem as the rent escalation clause two paragraphs away.
The lease calls it an Insured Loss anyway#
Here is where the drafting stops being an insurance problem and becomes a lease problem.
The AIR CRE standard multi-tenant industrial and commercial lease, net form, defines “Insured Loss” at paragraph 9.1(c) as damage or destruction to improvements “which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved."[4]
Read that last clause again. A $900,000 loss under a $1,900,000 deductible is an Insured Loss under this lease. The insurer’s check for zero dollars does not change the classification, because the classification turns on whether the peril was one the policy had to cover, not on whether any money came out.
That is not a quirk of the form. An Indiana appellate court held the same thing about the same words last November. In Bryan Builders, LLC v. The Cincinnati Casualty Company, a fire at an Amazon warehouse under construction in Plainfield, Indiana, caused about a million dollars of damage. Amazon’s all-risk builder’s policy carried a $35,000,000 deductible, so ACE American paid nothing, and the general contractor sued the subcontractors and their insurers to get the repair cost back. The master agreement incorporated the AIA documents and waived subrogation for damages “to the extent … covered by property insurance obtained pursuant to this Section 11.3.” The court held the waiver applied. “Covered by” describes the scope of the risk, not the fact of payment, and the panel leaned on a 1979 Indiana decision, South Tippecanoe School Building Corp. v. Shambaugh & Son, which had already held that a $1,000 deductible paid by the owner itself was still “covered by” the insurance.[5]
A thousand dollars in 1979 and thirty-five million in 2025 come out the same way. The principle scales, and a 5 percent named storm deductible scales with it.
The AIR form does not even leave room to argue. Paragraph 8.6 waives subrogation between landlord and tenant and then says the effect of the waiver “is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto."[4] Whatever the deductible does, neither party may pursue the other for it.
Who writes the check#
Paragraph 9.2 governs partial damage that is an Insured Loss. The landlord repairs at the landlord’s expense and the lease continues, and then: “if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds as and when required to complete said repairs."[4] On the multi-tenant net form the Insuring Party is the landlord, named as such on page one at paragraph 1.9. So the landlord funds the whole $900,000.
There is an escape hatch and it does not fit. The landlord is relieved of the shortage only where, “by reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available,” and even then only if the tenant declines to fund it within ten days of notice. A large deductible on an ordinary shopping center is not a unique improvement. The landlord pays.
Then the landlord bills it. Paragraph 4.2(a)(vii) lists among Common Area Operating Expenses: “Any deductible portion of an insured loss concerning the Building or the Common Areas."[4] No cap. No amortization over the useful life of anything. No carve-out for catastrophe deductibles, which the same list did not need in 2001 and needs now. It is item (vii) in a list of ten, sitting between the insurance premiums at (vi) and the auditors’ fees at (viii), and it is the largest number on the page.
So the tenant with a 9,600 square foot unit and an 8 percent share pays 8 percent of $900,000, which is $72,000. At $25 a square foot that tenant’s annual base rent is $240,000. The deductible line on one reconciliation statement is 30 percent of a year’s rent, and it arrives in a document most tenants review by checking whether the total moved more than they expected. Whether the tenant can even find it depends on whether the lease gives real CAM audit rights and enough time to use them, which on this form it does not.
Two details make that worse than it looks. The tenant is paying a share of repairs to parts of the building it does not occupy, because the clause covers the Building and the Common Areas rather than the premises. And the same clause charges the tenant for its share of the deductible even in the years the landlord chose a higher deductible to hold the premium down, since the premium at (vi) is also a Common Area Operating Expense. Raising the deductible lowers the premium, and the tenants were paying the premium. Keeping the deductible low raises the premium, and the tenants pay that too. The landlord picks the trade-off and stands on neither side of it, which is the same structural problem as an operating expense pool that only ever grows.
And the abatement is zero#
Paragraph 9.6(a) is the one that surprises people. Rent abates for the repair period “in proportion to the degree to which Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance."[4]
Proceeds received. Not proceeds owed, not rental value insured, not the amount of rent the tenant lost. The number the abatement is capped at is the number the carrier actually paid.
The carrier paid nothing. The percentage deductible was calculated on a base that included the $4,000,000 of rental value, and the combined loss came in under it. So the cap is zero and the abatement is zero. The tenant is closed for six weeks, pays about $27,700 of base rent for space it cannot use, and then pays $72,000 of the landlord’s deductible in the following year’s reconciliation. This is a different failure from the one where a government order closes the premises and the abatement clause never fires, but it lands in the same place.
The tenant’s remaining routes are closed by the same paragraph 8. Paragraph 8.8 says the landlord is not liable “under any circumstances” for “injury to Lessee’s business or for any loss of income or profit therefrom,” and that the tenant’s sole recourse is to claim on its own policies. Paragraph 8.4(b) requires the tenant to carry that business interruption cover. So the tenant’s lost income goes to the tenant’s own insurer, whose policy has its own named storm deductible and its own 72-hour waiting period, and the two deductibles apply independently of each other.
I have not found a reported decision construing “proceeds received from the Rental Value insurance” against a zero recovery. The words do not seem to leave much room, but a tenant arguing that the parties cannot have meant to tie abatement to a payment that a deductible structure made impossible is not making a frivolous argument. It is just an argument, made after the fact, about language the tenant signed.
Flood goes somewhere else entirely#
Most of Arthur’s damage was water, and the water was rain rather than wind. That matters, because the last sentence of paragraph 9.2 sends flood damage out of the Insured Loss track: “Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage."[4]
Paragraph 9.3 is the uninsured loss paragraph, and it hands the landlord a choice. Repair the damage, “subject to reimbursement pursuant to Paragraph 4.2,” which means bill the tenants. Or terminate the lease on 30 days’ notice, effective 60 days after that. The tenant’s only answer is to give written notice within 10 days committing to pay for the entire repair without reimbursement, and to produce the funds or satisfactory assurance within 30 days.
Think about what that is worth to a landlord holding a below-market lease with four years to run. A tropical storm floods the center, and the casualty clause has just handed the landlord something close to a recapture right it never negotiated for, exercisable for the price of a notice. The tenant who has spent a million dollars on build-out either writes a check for the whole repair or loses the space.
The flood insurance underneath this is thin by design. The National Flood Insurance Program tops out at $500,000 of building coverage and $500,000 of contents for a non-residential building.[6] Some commercial policies express the flood deductible in NFIP terms rather than as a percentage, and the wording matters enormously: a deductible “equal to the maximum NFIP limits available per building and its contents whether purchased or not” means the landlord eats a million dollars whether or not it ever bought a flood policy. Those structures usually carry a separate time element deductible on top, commonly around $100,000, because the NFIP does not insure time element at all.[3] Under paragraph 9.6(a), a $100,000 time element deductible on a claim smaller than that is another abatement of zero.
Three states, three answers#
The statutes that people assume protect them mostly do not reach commercial property.
Florida prohibits an insurer from issuing a policy covering real property in the state with a deductible that “applies solely to hurricane losses” or “states the deductible as a percentage rather than as a specific amount of money,” unless the Office of Insurance Regulation determines the provision “is clear and unambiguous."[7] That reads like a ban and works like a filing requirement. The consumer protections that follow it are narrower than the prohibition. Any policy with a separate hurricane deductible must carry the 18-point warning that it “MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU,” but only personal lines residential policies must show the actual dollar value of that deductible on the declarations page. A commercial landlord’s declarations page can say 5 percent and stop there. And the rule that the hurricane deductible applies once per calendar year rather than once per storm is written for personal lines residential, with commercial residential entitled to be offered both options. Ordinary commercial non-residential property gets neither. Three named storms in a Florida year can mean three deductibles.
Louisiana did the opposite and did it for commercial. Since 1 January 2023, for commercial property and commercial multi-peril policies, “any separate deductible that applies in place of any other deductible to direct physical loss or damage resulting from a named storm or hurricane shall be applied on an annual basis to all named storm or hurricane losses that are subject to the separate deductible during the calendar year.” Except for policies with total insured value of $20,000,000 or more.[8] The center in my example, at $38,000,000, is above the line. A Louisiana landlord with a $15,000,000 property is protected against a second deductible this year and one with a $38,000,000 property is not, and the difference is a threshold in a statute rather than anything in the lease.
Texas, where Arthur landed, has nothing equivalent that I have found. Galveston County is one of the fourteen counties served by the Texas Windstorm Insurance Association, the state’s residual wind insurer under Chapter 2210 of the Texas Insurance Code, and TWIA writes percentage deductibles on a named storm trigger. It also says, in as many words, that its policies “only provide coverage for property damage caused directly by wind and hail” and not flooding or storm surge.[10] On the stretch of coast where the season’s costliest storm came ashore, then: the deductible is a percentage nobody caps, and the water that did most of the damage is a different policy’s problem, if there is one.
Nineteen states and the District of Columbia have hurricane deductible rules of some kind.[9] Reading the lease will not tell you which one you are in, and reading the statute will usually not tell you whether it covers you.
Where the form went and where the market went#
The AIR CRE form has an opinion about deductibles, and the number it picked was not a coastal number even when it was new.
Paragraph 8.3(a) requires the landlord’s property policy to carry a deductible of no more than $5,000 per occurrence. In the 2001 version of the same form, the cap was $1,000; the 11-01-2017 revision moved it to $5,000 and left everything else alone.[4] Set that against a coastal named storm deductible of $1,900,000 on the numbers above. The form’s cap is off by a factor of 380, and the clause has never been amended to acknowledge that percentage deductibles exist.
So the Gulf Coast landlord in my example is in breach of its own insurance covenant from the day the policy incepts. The policy carries a percentage deductible worth $1,900,000 and paragraph 8.3(a) says the deductible shall not exceed $5,000. The lease provides no remedy for that breach. It provides a very specific remedy for the mirror-image default by the tenant: under paragraph 8.9, if the tenant fails to maintain its required insurance, base rent increases automatically by 10 percent, without notice, for every month or part of a month the lapse continues.[4] Self-executing penalty one way, nothing the other way. That asymmetry is in the form as printed, and it is the same shape as the repair-versus-replace allocation in the single-tenant version: a rule written when the underlying numbers were small, still doing work now that they are not.
Most institutional leases are not on the AIR form. They are longer, they are drafted by landlord’s counsel, and in my reading they are usually worse on this point rather than better, because a custom operating expense clause tends to say “all costs of insurance, including deductibles and self-insured retentions” without the AIR form’s accidental limit of “concerning the Building or the Common Areas.” That last observation is a judgment from the leases I have seen and not something anyone has counted.
Which of your leases charge the tenants for a deductible#
Acrebase reads casualty, insurance and operating expense clauses out of every lease in a portfolio and lines them up against each other, which is the comparison that matters here, because the exposure lives in the relationship between three clauses that sit forty pages apart. It flags the leases where deductibles are inside the operating expense definition without a cap, where rent abatement is limited to insurance proceeds actually received rather than to the rent lost, where the casualty clause routes flood to an uninsured loss paragraph with a landlord termination right, and where the lease still specifies a dollar deductible cap the property’s actual policy cannot meet. The clause library holds the language counsel has approved for coastal assets, including the fallback the team takes when a tenant will not accept an uncapped deductible pass-through, so the same position goes into every lease instead of being reinvented by whoever is drafting that week. Old leases read the same way as new drafts, which is the point: nearly all of this exposure is in documents signed years ago, on a form, by people who are no longer at the company.
If you are a landlord, the first job is arithmetic, not drafting. Get the deductible endorsement out of the policy, work out what the percentage is a percentage of, and write the resulting dollar figure on the front of the file. Then compare it to what your leases let you recover. If the operating expense clause passes deductibles through without a cap, you have a collection problem rather than a coverage problem: a six-figure line item lands on tenants who will dispute it, and disputing it is cheaper for them than paying it. Consider capping the pass-through per occurrence and amortizing the excess, which turns a disputed lump sum into a line tenants will actually pay. Ask your broker about an aggregate deductible, which caps what you pay in catastrophe deductibles across a policy year and drops the deductible to a much smaller figure once the cap is reached.[3] And fix paragraph 8.3(a) in your form before a tenant notices that you have been in breach of it since inception.
If you are a tenant, three edits are worth more than everything else you will ask for. Cap your share of any insurance deductible at a stated dollar amount per occurrence and per year, and require anything above the cap to be amortized. Strike the words “but not to exceed the proceeds received from the Rental Value insurance” from the abatement clause and abate by reference to the impairment of your use, because a cap tied to proceeds converts your abatement right into a bet on the landlord’s deductible. And ask what the property’s actual named storm deductible is, in dollars, before you sign. If the landlord’s leasing agent does not know, that is the answer to a different question you should also be asking. Check separately whether a storm closure puts you in breach of a continuous operation covenant, because the casualty clause and the operating covenant are rarely drafted to know about each other.
The season runs to 30 November. NOAA’s outlook allowed for one to three major hurricanes and none has formed, so the deductibles that fired this year fired on storms peaking somewhere between 45 and 70 miles an hour. Two months left.
Footnotes
[1] Tropical Storm Arthur (2026): formed 17 June 2026, peak sustained winds 45 mph, minimum pressure 999 mbar, landfall near Galveston, Texas, with an earlier center making landfall near Matagorda County. Damage estimated at greater than US$1 billion by Arthur J. Gallagher & Co. in July 2026. Rainfall of 29.06 inches (738 mm) at Cottonport, Louisiana, the state’s highest 24-hour total on record; about 6 inches at Weslaco, Texas, and more than 8 inches in parts of Freeport and Clute. Tropical storm watches were issued 16 June from Sargent, Texas to Morgan City, Louisiana, upgraded to warnings between Sabine Pass and Morgan City and then extended to Sargent on 17 June. Outage and storm surge figures from contemporaneous reporting by Houston Public Media and Fox Weather. https://en.wikipedia.org/wiki/Tropical_Storm_Arthur_(2026) and https://www.houstonpublicmedia.org/articles/news/local/galveston/2026/06/16/554721/tropical-storm-watch-galveston-weather-texas-flood/
[2] 2026 Atlantic hurricane season, running 1 June to 30 November 2026: seven named storms, zero hurricanes, zero major hurricanes, total damage greater than US$1.02 billion and four deaths as of late September. Arthur (17-18 June), Bertha (19-24 July), Cristobal (12-13 August), Dolly (27-28 August), Edouard (31 August - 3 September, landfall at Johnson Bayou, Louisiana), Fay (from 19 September), Gonzalo (25-26 September), with Hanna forming 28 September. “On September 11, the 2026 season surpassed the latest date for the first Atlantic hurricane of a season in the satellite era,” and the season is the first since 1914 to reach that point without a hurricane. NOAA’s pre-season outlook was for a below-normal season of eight to fourteen named storms, three to six hurricanes and one to three major hurricanes. https://en.wikipedia.org/wiki/2026_Atlantic_hurricane_season and https://www.noaa.gov/news-release/noaa-predicts-below-normal-2026-atlantic-hurricane-season
[3] AmWINS Brokerage, “Understanding Catastrophic Event Property Deductibles,” client advisory by Jennifer Walker (May 2018). Source for: percentage deductibles applying “a percentage to the value of the property and business income & extra expense (‘BI/EE’)”; the range of possible calculation bases, from “property and BI/EE values of just property for which a claim is made” up to “the entire statement of values regardless of where the property is located or if a claim is made”; Tier 1 Gulf and Atlantic coastal deductibles of about 5 percent against 1 to 3 percent for areas 150 miles or more inland; timing conditions applying the deductible to loss “occurring within 24 hours before the storm is named” and “within 72 hours after a named storm is downgraded”; occurrence definitions of 72 hours for named storm and flood and 96 hours for earthquake; the statement that “[a] named storm includes a hurricane and other named storms, such as tropical depressions and typhoons”; NFIP-limit deductible wordings, including “equal to the maximum NFIP limits available per building and its contents whether purchased or not,” with a separate time element deductible “(e.g. $100,000) because the NFIP does not insure time element”; and aggregate deductibles with a trailing or maintenance deductible. The advisory also records the Hurricane Sandy dispute, where the storm was downgraded to a tropical storm before landfall, some insurers applied hurricane deductibles anyway, and the governors of New York, New Jersey and Connecticut disagreed. https://www.amwins.com/docs/default-source/insights/clientadvisory_understanding-catastrophic-event-property-deductibles-5-18.pdf
[4] AIR CRE, Standard Industrial/Commercial Multi-Tenant Lease - Net, form MTN-26.10, revised 11-01-2017. Paragraph 1.9 (Lessor is the Insuring Party); 4.2(a)(vi) and (vii) (insurance premiums, and “[a]ny deductible portion of an insured loss concerning the Building or the Common Areas,” as Common Area Operating Expenses); 8.1 (premiums are a Common Area Operating Expense); 8.3(a) (agreed valuation, waiver of subrogation, CPI inflation guard, and “[i]f such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence”); 8.3(b) (Rental Value insurance, full Rent for one year plus a 180-day extended period of indemnity); 8.4(b) (Lessee’s business interruption cover); 8.6 (waiver of subrogation, “not limited by the amount of insurance carried or required, or by any deductibles applicable hereto”); 8.8 (exemption of Lessor from liability for “injury to Lessee’s business or for any loss of income or profit therefrom”); 8.9 (automatic 10 percent Base Rent increase for Lessee’s insurance lapse); 9.1(c) (“Insured Loss … irrespective of any deductible amounts or coverage limits involved”); 9.2 (Insuring Party contributes the shortage in proceeds; flood and earthquake partial damage routed to 9.3); 9.3 (uninsured loss, Lessor’s repair “subject to reimbursement pursuant to Paragraph 4.2” or termination); 9.6(a) (abatement “not to exceed the proceeds received from the Rental Value insurance”). https://www.aircre.com/site/wp-content/uploads/2017/10/MTN.pdf The $1,000 deductible cap appears at 8.3(a) of the 2001 version of the same form, which is otherwise identical on paragraphs 4.2(a)(vii), 8.6, 9.1(c) and 9.6(a): https://www.aircre.com/site/wp-content/uploads/2017/02/AIRCRE-Historical-Contracts-Multi-Tenant-Lease-Net-2001.pdf
[5] Bryan Builders, LLC v. The Cincinnati Casualty Company, No. 24A-CT-1068 (Ind. Ct. App. 6 November 2025). Fire during construction of an Amazon warehouse in Plainfield, Indiana, caused roughly $1,000,000 of damage; Amazon’s all-risk policy with ACE American carried a $35,000,000 deductible, so no insurance payment was made. The master agreement incorporated AIA A102 and A201 and waived subrogation for damages “to the extent … covered by property insurance obtained pursuant to this Section 11.3.” Holding: “Like the $1,000 deductible in South Tippecanoe, even though ACE didn’t pay the $1 million, that amount is still covered by the All-Risk Policy under the Master Agreement’s subrogation waiver, and thus the waiver applies.” Relying on South Tippecanoe School Building Corp. v. Shambaugh & Son, Inc. (Ind. Ct. App. 1979), where “[e]ven though the $1,000 was paid by the owner itself, not its property insurer, it was still ‘covered by’ the property insurance such that the subrogation waiver barred recovery for that amount.” https://caselaw.findlaw.com/court/in-court-of-appeals/117913459.html and the slip opinion at https://law.justia.com/cases/indiana/court-of-appeals/2025/24a-ct-01068-0.html
[6] National Flood Insurance Program maximum coverage limits for a non-residential building: $500,000 building and $500,000 contents. FEMA / FloodSmart agent materials and the Congressional Research Service primer on the NFIP. https://agents.floodsmart.gov/topics/selling-flood-insurance/coverage and https://www.congress.gov/crs-product/IF10988
[7] Fla. Stat. § 627.701. Subsection (2): unless the Office of Insurance Regulation “determines that the deductible provision is clear and unambiguous, a property insurer may not issue an insurance policy or contract covering real property in this state which contains a deductible provision that: (a) Applies solely to hurricane losses. (b) States the deductible as a percentage rather than as a specific amount of money.” Subsection (4)(a) requires the 18-point warning on “[a]ny policy that contains a separate hurricane deductible.” Subsection (4)(b) limits the requirement to display the deductible’s actual dollar value to personal lines residential policies. Subsection (5)(a) applies the annual, rather than per-hurricane, deductible rule to personal lines residential policies; (5)(b) requires that commercial residential policyholders be offered both an annual and a per-hurricane deductible. Subsection (3) sets out the alternative deductible amounts an insurer must offer on personal lines residential policies. https://www.flsenate.gov/Laws/Statutes/2025/627.701
[8] La. R.S. 22:1267.1(B): “For all commercial property insurance policies and commercial multi-peril insurance policies issued or issued for delivery in this state by an authorized insurer on or after January 1, 2023, except for policies with a total insured value equal to or greater than twenty million dollars, any separate deductible that applies in place of any other deductible to direct physical loss or damage resulting from a named storm or hurricane shall be applied on an annual basis to all named storm or hurricane losses that are subject to the separate deductible during the calendar year.” Subsection (E): “This Section shall apply only to property located in this state.” The residential equivalent is La. R.S. 22:1337. https://codes.findlaw.com/la/revised-statutes/la-rev-stat-tit-22-sect-1267-1/
[9] Insurance Information Institute, “Background on: Hurricane and windstorm deductibles.” Nineteen states and the District of Columbia have hurricane deductibles: Alabama, Connecticut, Delaware, Florida, Georgia, Hawaii, Louisiana, Maine, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas and Virginia. The III also records that in Louisiana a named storm deductible applies when the National Hurricane Center reports that a storm reached tropical storm strength, meaning winds of 39 mph. https://www.iii.org/article/background-on-hurricane-and-windstorm-deductibles
[10] Texas Windstorm Insurance Association, “About TWIA,” and Chapter 2210 of the Texas Insurance Code. TWIA operates in 14 counties, “is governed by Chapter 2210 of the Texas Insurance Code,” and its policies “only provide coverage for property damage caused directly by wind and hail,” which excludes flooding and storm surge. Its deductible structure and the minimum deductible levels for commercial policies are set out in the TWIA manual rules filed with the Texas Department of Insurance. I looked for a Texas provision doing for commercial percentage deductibles what La. R.S. 22:1267.1 does and did not find one, which is a gap in my search rather than a finding that none exists. https://www.twia.org/about/ and https://www.tdi.texas.gov/submissions/documents/TWIA-Manual-220.doc
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