Short answer
In catastrophe-exposed regions, wind, hail and named-storm losses are frequently subject to separate deductibles, often expressed as a percentage of insured value. The deductible structure can matter as much to the association as the premium.
What this coverage is
Wind and hail may be included in the property policy, written with a separate percentage deductible, or in some markets excluded and placed separately.
Named-storm deductibles are triggered by a declared storm event and can differ from the general wind and hail deductible.
Why it matters to community associations
A percentage deductible on a large insured value can represent a substantial retained loss that must be funded by the association.
Roof age, roof type and cosmetic-damage limitations materially affect what is recoverable.
Catastrophe pricing is driven by regional and reinsurance conditions, not only by an individual association's history.
Common exposures
- Hail damage to roofs, vents, HVAC condensers and screens
- Wind damage to roof coverings, fencing, carports and signage
- Water intrusion following wind-created openings
- Debris removal and post-storm demand surge costs
Questions boards should consider
- What is the wind, hail and named-storm deductible in actual dollars, per building or per occurrence?
- Could that amount be funded without a special assessment?
- Are there cosmetic damage exclusions or roof schedules limiting recovery?
- How old are the roofs, and is documentation of condition available?
- Is a parametric or deductible buy-down option available and appropriate?
Common misconceptions
Misconception: “The deductible applies once to the whole community.”
Some forms apply the deductible per building or per unit, which can multiply the retained cost across a large community.
Misconception: “A new roof guarantees a lower premium.”
Roof age is one meaningful underwriting factor, but pricing also reflects catastrophe modeling and market conditions.
Risk-management considerations
- Maintain documented roof inspections and replacement records
- Retain engineering or mitigation reports for underwriters
- Model the deductible against reserves before renewal
- Plan post-storm contractor and documentation procedures in advance
Frequently asked questions
How is a percentage deductible calculated?
It is typically a stated percentage of the insured value of the affected building or of the total insured value, depending on the policy wording.
Why did our wind deductible increase without a claim?
Catastrophe deductible structures often change with regional loss activity, reinsurance cost and carrier appetite in a given territory.
Sources
- Texas Department of Insurance — Consumer and commercial insurance guidance
- FEMA / National Flood Insurance Program — Flood insurance and flood risk resources
Coverage depends on the specific policy language, endorsements, facts of the loss and applicable law. This page is general information, not legal advice or a statement that coverage applies.
Written and reviewed by The Duncan Group Community Association Practice. Last reviewed September 2026.