Your Rent Abatement Is Zero When the Named Storm Deductible Exceeds the Loss
The 2026 Atlantic season has produced seven named storms and no hurricanes, and more than a billion dollars of damage. A hurricane deductible would not have fired once. A named storm deductible fires on a 45 mph tropical storm, and on a Gulf Coast property it is usually 5 percent of the insured value, which on a mid-sized shopping center is a seven-figure number the insurer never pays. The AIR CRE form then calls the loss an Insured Loss anyway, bills the deductible to the tenants as an operating expense, and caps rent abatement at insurance proceeds that were never released.