(Understanding how a recent decision may affect your homeowners policy and how courts interpret the term windstorm after a tornado outbreak)
If a tornado hits your home in Texas, you may end up paying more out of pocket than you expected.
That’s because of a recent decision from the Texas Supreme Court.
This decision helps explain how insurance policies should treat tornado damage, and it could affect how much money you have to pay before your insurance kicks in.
What Happened in This Case?
(How a tornado outbreak led to a dispute over the term windstorm)
The case is called Privilege Underwriters Reciprocal Exchange v. Mankoff.
In this case, a tornado hit a home in Texas and caused serious damage following a tornado outbreak. The homeowners filed a claim with their insurance company to get help paying for repairs.
But the insurance company made an important argument:
- The tornado was a windstorm
- So the windstorm deductible should apply
The homeowners disagreed. They believed a tornado was different from a regular windstorm. Because of that, they thought the lower deductible should apply instead.
The disagreement turned into a lawsuit. The case went through multiple courts, including an appellate court, during the appeals process, and eventually reached the Texas Supreme Court.
What Did the Court Decide?
The court made a clear and important decision:
- A tornado is a windstorm
The insurance policy in this case used the word “windstorm,” but it did not explain what that word meant in the homeowners' insurance policy.
So, the court followed a simple rule:
- If a word is not defined, use its normal, everyday meaning
The court looked at common dictionary definitions and found that windstorms are storms with strong, violent winds. Tornadoes clearly fit that description.
Because of that, the court said:
- A tornado counts as a windstorm under the policy
This meant the insurance company was right to apply the windstorm deductible.
Why This Matters for Homeowners
This recent decision can have a big impact on how much money you pay after a storm.
Many homeowners in Texas have policies with two different deductibles:
- A lower deductible for most types of damage (often around 1%)
- A higher deductible for wind, hail, or windstorms (often 2% to 5%)
The difference between these two can be huge.
Let’s look at a simple example:
If your home is insured for $400,000:
- A 1% deductible = $4,000
- A 3% windstorm deductible = $12,000
That’s an $8,000 difference
Because of this court decision, tornado damage may now fall under the higher windstorm deductible.
That means many homeowners could have to pay thousands more before their insurance helps.
Why Insurance Companies Care About This
Insurance companies use different deductibles to manage risk.
Windstorms and hail events happen often in Texas. They can cause a lot of damage, especially to roofs.
Because of that, insurance companies often set higher deductibles for these types of claims.
This court decision supports that approach.
It confirms that, unless a policy clearly says otherwise, tornadoes will be treated the same as other wind-related events under a homeowner's policy.
Does This Change What Your Policy Covers?
No, and this part is very important.
- The ruling does NOT change what your policy covers
If your policy already covers wind or tornado damage, that part stays the same.
What changes is:
- Which deductible applies
So you may still have coverage, but you might have to pay more before insurance starts paying.
Not Every Policy Will Be the Same
Even though this decision is important, it does not apply the same way to every homeowner.
Your situation depends on your specific policy.
Things that can make a difference include:
- Whether your policy defines “windstorm”
- Whether you have a separate wind/hail deductible
- The percentage of your deductible
- Any special endorsements or exclusions
For example, some policies may clearly define tornadoes. Others may not have a separate windstorm deductible at all.
That’s why it’s so important to read your policy carefully.
What Should You Do Now?
If you own property in Texas, this is a good time to review your insurance.
Here are a few simple steps you can take:
1. Check your deductible
Look at your declarations page and find:
- Your standard deductible
- Your windstorm or hail deductible
Make sure you understand both.
2. Know the real dollar amount
If your deductible is a percentage, do the math.
Many homeowners don’t realize how high their deductible is until after a loss.
3. Talk to your insurance agent
Ask questions like:
- Does my policy treat tornadoes as windstorms?
- What deductible will apply after a tornado?
- Are there options for a lower deductible?
4. Plan ahead
It’s much easier to make changes before a storm happens.
After a storm is coming or has already hit, insurance companies may not allow changes.
Why This Decision Is Important
This ruling gives more clarity to both homeowners and insurance companies.
It shows that courts will:
- Use everyday meanings for undefined terms
- Apply policy language as written
It also highlights how important policy wording is.
Even one undefined word, like “windstorm”, can make a big difference in how a claim is handled.
Tornado Claim Denied or Underpaid? We Can Help You Fight Back
If your tornado claim was denied, underpaid, or you’re being told a higher windstorm deductible applies, you don’t have to handle it alone. At Vargas Gonzalez Delombard, LLP, we help homeowners fight back against insurance companies and make sure policies are applied the right way.
Contact us today for a free consultation and let us review your claim.
