AL HB373

Limit separate deductibles for named storm or hurricane losses to one application per calendar year for homeowners' and commercial property insurance policies issued or renewed on or after October 1, 2023.

Define hurricane as a storm declared by the National Hurricane Center and named storm as a storm system declared as such by the National Hurricane Center.

For policies covering one- or two-family owner-occupied premises, any separate deductible applies one time annually to all named storm or hurricane losses subject to that deductible during the calendar year.

For commercial property and commercial multi-peril insurance policies, separate deductibles for named storms or hurricanes may only be applied once per calendar year to all applicable losses during that year.

If multiple named storms or hurricanes cause losses in a single calendar year, insurers may apply a deductible to subsequent storms equal to the remaining separate deductible amount or the standard all-perils deductible, whichever is greater; policyholders must maintain loss records for subsequent claims.