Deductibles
Texas wind and hail deductibles, explained
AIV Insurance LLC · Updated · How we write these
Short answer. Many Texas home and rental policies have a separate wind and hail deductible, and it is often a percentage of the dwelling limit (the amount the house itself is insured for), not of the damage. On a house insured for $150,000, a 5% deductible is $7,500, so a $6,500 hail repair is paid by you, not the policy.
Before you choose a percentage, work out what it comes to in dollars.
What the wind and hail deductible is
Many policies carry two deductibles:
| Deductible | Applies to | Usually written as |
|---|---|---|
| Wind and hail | Damage caused by wind or hail | A percentage of the dwelling limit (such as 1%, 2%, 3% or 5%; not every insurance company offers 1%), or less often a flat amount |
| All other perils | Most other covered claims: fire, a burst pipe, vandalism | A flat dollar amount |
The Texas Office of Public Insurance Counsel puts it plainly: a percentage deductible "is based on the percentage of your home or condo's insured value" (OPIC). The Texas Department of Insurance (TDI) advises: "If a policy has a deductible that's a percentage, make sure you know how that translates to a dollar amount" (TDI).
How a 2% wind and hail deductible works, in dollars
Multiply the percentage by the dwelling limit on your declarations page (often labelled Coverage A). That figure is what it would cost to rebuild the house as insured. It is not the market value or what you paid for it.
| Dwelling limit | 1% | 2% | 3% | 5% |
|---|---|---|---|---|
| $150,000 | $1,500 | $3,000 | $4,500 | $7,500 |
| $250,000 | $2,500 | $5,000 | $7,500 | $12,500 |
| $400,000 | $4,000 | $8,000 | $12,000 | $20,000 |
TDI's own example. A home is insured for $150,000 and hail damage to the roof costs $6,500 to repair. With "a 5 percent deductible – or $7,500", the policy "would not pay anything" (TDI). The same repair under a lower percentage, for illustration:
| Wind and hail deductible | You pay first | Left for the policy to consider |
|---|---|---|
| 2% ($3,000) | $3,000 | $3,500 |
| 3% ($4,500) | $4,500 | $2,000 |
| 5% ($7,500) | $6,500 (all of it) | nothing |
TDI's general rule: "In general, the higher the deductible, the lower the cost for the policy." A higher percentage usually lowers the price and raises what you pay after a storm.
What the policy actually pays also depends on how the roof is settled: replacement cost, actual cash value (after depreciation), or a schedule by roof age can each give a different answer on the same roof. TDI notes that "as roofs age, some companies will switch to actual cash value" (TDI, Insurance and your roof), and Fannie Mae's rules for mortgaged one-to-four-unit homes say roofs "do not have to be insured on a replacement cost basis" (Fannie Mae B7-3-02, August 5, 2026), so a lender may accept a policy whose roof is not on replacement cost. How that works, with TDI's figures: Roof ACV vs replacement cost in Texas.
Why it matters so much in Central Texas
- Hail is the largest source of home insurance losses in Texas. In TDI's homeowners data, hail had the largest insured losses of any cause in every year from 2016 through 2024 except 2021, the year of Winter Storm Uri, when water and freeze losses led, and TDI's newest figures, for 2025, again put hail first. In 2024 hail insured losses were $4.93 billion and wind insured losses $2.21 billion (TDI market overview, Texas Statistical Plan data, read September 29, 2026). These figures are for homeowners policies; TDI does not publish the same table for dwelling or landlord policies there.
- Texas gets more hail than almost anywhere. In 2025 Texas had 902 major hail events (hailstones one inch or larger), more than any other state; NOAA's Storm Prediction Center counted 5,432 hail events of all sizes nationwide, and "Texas and Kansas had the largest number of hail events" (Insurance Information Institute, 2025 data, read September 29, 2026).
- Central Texas is outside the TWIA area. The Texas Windstorm Insurance Association writes wind and hail only in the 14 first-tier coastal counties and parts of Harris County (TWIA). Travis, Williamson and the counties around them are not on that list, so wind and hail are normally covered by the house's own policy, under its own wind and hail deductible.
How to choose, without guessing
- Convert every percentage to dollars using your own dwelling limit.
- Ask whether you could pay that amount the week after a hailstorm, for this house and for every other house you own in the same area. One storm can hit several of them.
- Weigh the yearly price difference against the extra you would pay on one claim. Ask for prices on your own house; a general rule of thumb does not know your roof or your street.
- Check your loan documents. For one-to-four-unit homes with loans sold to Fannie Mae, the maximum deductible is 5% of the property insurance coverage amount, and where a policy has separate deductibles, such as one for windstorm, "each individual deductible must not exceed 5% of the property insurance coverage amount" (Fannie Mae B7-3-02). Other loans follow other rules, so ask your lender (or the company that services your loan) before you raise a deductible. More in Texas rental insurance: mortgage and escrow.
- Check the roof settlement at the same time. A low deductible does little good if an older roof is settled at a depreciated value.
At AIV Insurance we show a percentage deductible in dollars, next to the percentage, before you choose. For how a landlord policy works around it, see Texas landlord insurance: what a DP-3 covers.
Frequently asked questions
Is a 2% wind deductible 2% of my claim?
No. The Texas Office of Public Insurance Counsel explains that a percentage deductible is based on the home's insured value (OPIC), which on a landlord policy is usually the dwelling limit. For example, on a $300,000 dwelling limit, 2% is $6,000, whether the damage is $8,000 or $80,000.
Does the wind and hail deductible replace my regular deductible on a storm claim?
Generally the wind and hail deductible applies to wind or hail damage instead of the all-other-perils deductible (the flat deductible for most other claims), not in addition to it. How a loss with more than one cause is handled depends on the policy wording, so ask us to check yours.
Is the deductible per claim or per year?
The Texas Department of Insurance says that "for home and auto policies, the deductible will be applied to each claim" (TDI). Some policies define the storm deductible per occurrence. The wording on your policy decides it.
Why doesn't my declarations page show the dollar amount?
Texas law requires a residential property declarations page (the policy's summary page) to "state the exact dollar amount of each deductible" (Ins. Code §2301.056), but that chapter is written for insurers authorized in Texas, so a surplus-lines policy may show only the percentage. Multiply the percentage by the dwelling limit to get the figure. More in How to read a Texas rental declarations page.
Can I get a flat-dollar wind and hail deductible in Texas?
Sometimes. Some insurance companies offer a flat amount next to the percentage options; others offer only percentages. Availability depends on the company and the house.
Does a higher dwelling limit raise my wind and hail deductible?
Yes, if the deductible is a percentage. Raising the dwelling limit, for example to keep up with rebuilding costs, raises a percentage deductible in dollars too.
Is wind and hail covered on a rental in Austin, or do I need TWIA?
The Texas Windstorm Insurance Association covers only the designated coastal area (TWIA). A rental in the Austin area normally gets wind and hail coverage from its own policy, under that policy's wind and hail deductible.
Sources
- Texas Department of Insurance, What to know about deductibles (updated October 14, 2024)
- Texas Department of Insurance, Insurance and your roof: What to know when buying a policy or filing a claim (updated April 1, 2026)
- Texas Office of Public Insurance Counsel, Decoding residential property deductibles
- Texas Department of Insurance, Texas homeowners insurance market overview (Texas Statistical Plan data, read September 29, 2026)
- Insurance Information Institute, Facts + Statistics, Hail (2025 data)
- Texas Windstorm Insurance Association, Coverage and eligibility
- Fannie Mae Selling Guide B7-3-02, Property insurance requirements for one- to four-unit properties (August 5, 2026)
- Texas Insurance Code, Chapter 2301 (§2301.051, §2301.056)
Last reviewed . Rules, figures and web pages change; the linked source is the authority.
Related guides
- Texas landlord insurance: what a DP-3 coversHow a DP-3 landlord policy works in Texas, what it usually leaves out (liability, theft, flood, foundation), and what to check before your renewal.
- Roof ACV vs replacement cost in TexasOn an older roof, actual cash value can pay little or nothing. How Texas rental policies settle roofs, the 80% rule, and what to check at renewal.
- Texas rental insurance: mortgage and escrowNo Texas law requires rental insurance, but your lender will. What a lender can and can't demand, how escrow pays, and what force-placed insurance is.
- Texas storm and hail claims on a rentalStorm or hail damage to a Texas rental: photos, temporary repairs, filing with your insurance company, Texas claim deadlines, TWIA, tenants and contractors.