Weather Channel’s Decision to Name Winter Storms

The Weather Channel’s decision this winter season to start naming severe winter storms in the U.S. — such as bestowing the name “Nemo” for the massive Feb. 8-9 winter storm — most likely will not have any implication for “named-storm clauses” found in many property policies, the Insurance Information Institute said.

Under named-storm clauses, policyholders may be subject to higher deductibles when covered losses arise from storms that were given names by the National Weather Service, National Oceanic Atmospheric Administration or other major meteorological authority.

“The named-storm clauses requiring higher deductibles typically have to do with wind speeds set forth by the National Weather Service, ” said Loretta Worters, vice president of the Insurance Information Institute.

There are two kinds of wind damage deductibles: hurricane deductibles, which apply to damage solely from hurricanes, and windstorm or wind/hail deductibles, which apply to any kind of wind damage. Percentage deductibles typically vary from 1 percent of a home’s insured value to 5 percent. In some coastal areas with high wind risk, hurricane deductibles may be higher.  To read more Click Here