By Misty Castile | The Center Square
(The Center Square) – Tornado damage linked to Tropical Storm Arthur could trigger higher named storm insurance deductibles for Louisiana homeowners, even when the damage was caused by tornadoes rather than hurricane-force winds.
Arthur made landfall in Texas on Wednesday, weakening before pushing severe storms across southeast Louisiana. It spawned at least 11 confirmed tornadoes, according to the National Weather Service, leaving damaged homes, downed trees, flooding and injured residents from Jefferson Parish to St. Tammany Parish.
Homeowners filing claims for tornado damage may be subject to their policies’ named storm deductibles, which can be significantly higher than standard deductibles.
Hypothetically, a Louisiana home insured at $250,000 with a 2% named storm deductible faces a $5,000 deductible whereas a typical $1,000-$2,500 standard deductible.
Louisiana Insurance Commissioner Tim Temple told WVUE the landfall location does not matter.
“That storm irrespective where it came on shore,” Temple said. “I mean, it’s not a Texas storm. It’s not a Louisiana storm. It’s a U.S. storm, right?”
Under state law, insurers may apply a separate deductible for losses resulting from a named storm or hurricane. The deductible is commonly calculated as a percentage of a home’s insured value rather than a fixed dollar amount.
The Louisiana Department of Insurance says tornado damage associated with a named storm is generally subject to the named storm deductible.
“In most cases, your policy’s Named Storm Deductible will apply to damage that occurred while Tropical Storm Arthur was still a tropical storm, including damage caused by a tornado spawned by Arthur,” the department said in consumer guidance issued following the storm.
State law allows insurers to apply either a named storm deductible or an all-perils deductible for a single event, but not both.
The law also limits how often a named storm deductible can be fully applied. Once a homeowner has satisfied the deductible during a calendar year, insurers generally cannot charge the full amount again for another named storm claim that same year.
Gov. Jeff Landry addressed concerns about insurance claims in a social media post over the weekend, saying he had spoken with Temple.
“I have spoken with Insurance Commissioner Tim Temple – he has no reports of anyone being denied a claim or reduced coverage for damage following Tropical Storm Arthur or the storms that followed,” Landry wrote.
Landry encouraged residents who believe their claims have been improperly denied or reduced to contact the Louisiana Department of Insurance.
The department advises homeowners to document damage with photographs and videos before beginning cleanup, make temporary repairs to prevent additional damage and keep receipts for emergency expenses.
Homeowners are also encouraged to file claims even when estimated damages fall below their deductible. Under Louisiana law, those losses may count toward satisfying the annual named storm deductible if another named storm affects the property later in the year.
National Weather Service survey teams continue assessing storm damage across southeast Louisiana. A preliminary report released Monday confirmed an EF-1 tornado near Lacombe in St. Tammany Parish with peak winds of 95 mph. The tornado was one of three confirmed in the parish during the outbreak and one of at least 11 tornadoes linked to the remnants of Arthur.