2026-09-10 · Louisiana · Compliance

Where things stand. Louisiana has a genuinely valuable protection against being hit twice by the same deductible in one hurricane season. Many condominium associations are outside it, and the reason is a dollar threshold most boards have never been told about.

The rule, and the exception in the same sentence

“B. For all commercial property insurance policies and commercial multi-peril insurance policies issued or issued for delivery in this state by an authorized insurer on or after January 1, 2023, except for policies with a total insured value equal to or greater than twenty million dollars, any separate deductible that applies in place of any other deductible to direct physical loss or damage resulting from a named storm or hurricane shall be applied on an annual basis to all named storm or hurricane losses that are subject to the separate deductible during the calendar year.”

An association master policy is a commercial property or commercial multi-peril policy, so it is inside the rule — unless the building's total insured value reaches twenty million dollars, which a mid-rise or a multi-building regime commonly does.¹

How the annual credit works when it does apply

“C. If an insured suffers direct physical loss or damage resulting from more than one named storm or hurricane during a calendar year that is subject to the separate deductible provided in Subsection B of this Section, the insurer may apply a deductible to any succeeding named storm or hurricane that is equal to the remaining amount of the separate deductible or the amount of the deductible that applies to all perils other than a named storm or hurricane, whichever is greater. Insurers may require commercial policyholders to maintain receipts or other records of any losses in order to apply any losses to subsequent named storm or hurricane claims.”

The second sentence is the operational one for a board: the credit is documentary. An association that cannot produce receipts for the first storm's losses may not get them applied against the second.

1. La. R.S. 22:1267.1 — Commercial insurance deductibles applied to named storm, hurricane, and wind and hail deductibles ↩
2. Transportation Consultants, Inc. v. Certain Underwriters at Lloyd’s, London, No. 25-30372 (5th Cir. Sept. 3, 2026) — published opinion ↩
3. La. R.S. 9:1123.112 — Insurance (Louisiana Condominium Act) ↩