When the deductible applies
Under 19 Miss. Admin. Code Part 1, Chapter 41, a hurricane deductible applies from the time a hurricane watch or warning is issued for any part of Mississippi by the National Hurricane Center, while hurricane conditions exist anywhere in Mississippi, until 24 hours after the last hurricane watch or warning for any part of Mississippi ends. Named storm deductibles use the same window keyed to named storm watches and warnings.
A buy-back option must be offered
If a homeowners policy includes a percentage named storm or hurricane deductible, the insurer must offer an actuarially sound buy-back provision, unless the Commissioner grants a waiver after a formal filing.
Notice and the declarations page
Insurers must give clear and prominent notice of these deductibles in at least 10-point type, with a practical example, and the dollar amount of a percentage deductible based on Coverage A must appear on the declarations page.
Who the rule covers
The regulation applies to admitted insurers. It does not apply to windstorm and hail policies written by the Mississippi Windstorm Underwriting Association or to non-admitted carriers.
What a 2% deductible costs
A percentage deductible is applied to the dwelling coverage limit (Coverage A), not to the damage. On $300,000 of dwelling coverage a 2% deductible is $6,000; on $500,000 it is $10,000. Covered storm damage below that amount is paid by the homeowner.
Read your own declarations page and deductible endorsement: the policy wording, together with state law, decides which deductible applies to a loss. This page summarises the official state guidance only.