What Is a Named Storm Deductible?
A named storm deductible (also called a hurricane deductible or windstorm deductible) is a higher, percentage-based deductible that applies when the National Hurricane Center assigns a name to a tropical storm or hurricane.
Unlike your standard flat-dollar deductible (typically $1,000-$5,000), named storm deductibles are calculated as a percentage of your yacht's insured value—usually between 2% and 10%.
Key Point:
For a $300,000 yacht with a 5% named storm deductible, you pay the first $15,000 of any hurricane damage before insurance kicks in. This can be significantly higher than your standard deductible. Calculate yours →
How Named Storm Deductibles Work
When It's Triggered
Your named storm deductible applies when all three of these conditions are met:
- The National Hurricane Center names the storm: Tropical Storm Alex, Hurricane Ian, etc.
- Damage occurs during the storm period: Typically from 12-48 hours before the storm enters your policy's coverage area until 12-48 hours after it exits
- The damage is wind- or water-related: Hull damage, rigging damage, flooding, etc.
How the Percentage Works
The deductible percentage is applied to your yacht's agreed value or actual cash value (depending on your policy type).
Example Calculation:
Partial Loss vs Total Loss Scenarios
| Scenario | Damage Amount | Your Deductible (5%) | Insurance Pays |
|---|---|---|---|
| Minor damage | $10,000 | $10,000 | $0 |
| Moderate damage | $80,000 | $25,000 | $55,000 |
| Total loss | $500,000 | $25,000 | $475,000 |
Important:
If your damage is less than your deductible (like the $10,000 example above), you pay the entire repair cost out of pocket. Insurance only pays once damage exceeds your deductible amount.
Named Storm vs Standard Deductible
Most yacht insurance policies have two separate deductibles:
Standard Deductible
For all other claims
- ✓ Fixed dollar amount ($1,000-$5,000)
- ✓ Applies to: collision, grounding, fire, theft, etc.
- ✓ Predictable and manageable
Named Storm Deductible
Hurricane/tropical storm only
- ✓ Percentage of insured value (2-10%)
- ✓ Applies to: named tropical storms & hurricanes
- ✓ Can be $10,000-$100,000+ depending on yacht value
Why Florida Has Higher Named Storm Deductibles
Florida yacht insurance policies typically have higher named storm deductibles (often 5-10%) compared to other regions for several reasons:
- Hurricane frequency: Florida averages 1-2 hurricane impacts per year
- High repair costs: Catastrophic events create supply shortages and price spikes
- Reinsurance costs: Insurers pay more to reinsure Florida hurricane risk
- Regulatory environment: Florida's insurance market has experienced instability, leading to conservative underwriting
Some insurers even require separate hurricane coverage or exclude named storm damage entirely for vessels kept in certain Florida waters during hurricane season (June 1 - November 30).
What You Need to Know Before Hurricane Season
1. Know Your Exact Deductible Amount
Don't wait until a storm is approaching. Use our Named Storm Deductible Calculator to calculate your exact dollar exposure and plan accordingly.
2. Review Your Navigation Limits
Your policy may have navigation limits or named storm warranties that require you to move your yacht out of high-risk areas when a storm is forecast.
3. Plan Your Cash Reserves
If you have a $25,000 deductible, ensure you have liquid funds available. Some marinas and boatyards require upfront payment for haul-outs and emergency repairs.
4. Document Pre-Storm Condition
Take dated photos and video of your yacht before hurricane season. This documentation helps establish pre-existing damage vs storm damage during claims.
Frequently Asked Questions
Does a tropical storm count, or only hurricanes?
Yes, tropical storms count. The named storm deductible applies to any system that the National Hurricane Center assigns a name to, regardless of whether it reaches hurricane strength. Tropical Storm Eta still triggers your named storm deductible even though it never became Hurricane Eta.
Can I lower my named storm deductible?
Some insurers offer lower deductible options (e.g., 2% instead of 5%), but expect to pay significantly higher premiums. In high-risk areas like South Florida, lower deductibles may not be available at all.
What if my yacht is damaged by wind but the storm isn't named?
If the windstorm was not a named tropical system, your standard deductible applies. For example, a severe thunderstorm or microburst would trigger your regular $2,500 deductible, not your 5% named storm deductible.
How long does the named storm period last?
Most policies define the "named storm period" as starting 12-48 hours before the storm enters your coverage area and ending 12-48 hours after it exits. Check your policy declarations for the exact window—this varies by insurer.
Can I avoid the deductible by moving my yacht?
If you successfully evacuate your yacht to a location outside the storm's forecast path and it sustains no damage, you avoid the deductible entirely. However, if you move the yacht but it's still damaged, the named storm deductible applies based on where the damage occurred.