The named-storm deductible, not the base rate, is what determines a coastal board's exposure.

Hurricane and named-storm wind exposure sits at the center of every coastal community-association property placement, from Texas's Gulf Coast through Florida and up the Atlantic seaboard. Unlike most perils, wind from a named storm is usually not covered under the policy's standard, all-other-perils deductible. Instead it carries its own separate deductible, and that separate deductible, not the base premium, is what typically determines how large a bill an association actually has to fund out of reserves or a special assessment after a storm makes landfall.

The named-storm deductible is commonly expressed as a percentage of the building's insured value, often falling somewhere in a 2% to 5% range depending on location, construction, and the specific market, rather than as a flat dollar figure. On a coastal mid-rise or high-rise with a large replacement value, that percentage can add up to a retention in the hundreds of thousands or even millions of dollars, a number a board needs to see in dollars, not just as a percentage, before it can judge whether reserves are adequate.

Florida's disclosure statute exists because the percentage figure alone hides the real number

Florida Statute 627.701 requires that a hurricane deductible on a residential property policy be disclosed clearly, so that a board or unit owner can see the dollar impact of the percentage, not just the percentage itself. That disclosure requirement exists precisely because a "2% hurricane deductible" reads as a small number until it is multiplied against an eight or nine-figure insured value. Any Florida community- association board reviewing a renewal quote should locate that dollar-denominated disclosure and treat it as the first line item on the quote, ahead of the premium.

Texas and other Gulf and Atlantic coastal states generally follow the same deductible structure in practice, a separate, percentage-based named-storm or hurricane deductible layered on top of the standard property deductible, even where the state does not have an identical disclosure statute on the books. The underlying discipline is the same everywhere the exposure exists: convert the percentage to a dollar figure before judging whether the association can actually fund it.

Wind and flood are always two different coverages, never one

A hurricane produces two distinct kinds of physical damage, wind damage to the structure and water damage from storm surge or heavy rainfall, and property insurance treats them as entirely separate perils. The master property policy's named-storm deductible applies to wind damage. Flood, whether storm surge pushing seawater into ground-floor units and garages or inland freshwater flooding from rainfall, is excluded from that same policy and has to be insured through a separate flood placement, typically an NFIP policy, a private flood policy, or an excess flood layer above the NFIP limit.

This distinction matters most in the claims aftermath of a major storm, when a board is trying to determine which policy responds to which portion of the damage. A ground-floor unit that takes on several feet of storm surge and a top-floor unit that loses its roof to wind in the same storm are, from an insurance standpoint, two entirely different claims running against two entirely different policies, even though both owners experienced "the hurricane" as a single event.