Did the Texas Supreme Court Rule Tornadoes Count as Windstorms for Deductibles?
The Ruling
Yes, the Texas Supreme Court definitively ruled on February 13, 2026, that tornadoes unambiguously qualify as windstorms for insurance purposes. This landmark decision settles a dispute that has significant financial implications for Texas homeowners in tornado-prone areas.
The Case Background
The case involved Jeff and Staci Mankoff, whose Dallas home was damaged by a 2019 tornado. Their insurer, Privilege Underwriters Reciprocal Exchange, applied an $87,156 windstorm deductible to their claim. The homeowners argued that tornado damage shouldn't fall under the windstorm deductible category, leading to a legal battle that reached the state's highest court.
Court's Reasoning
Justice Debra H. Lehrmann explained that when insurance policies don't define terms, courts examine their ordinary meanings using dictionaries. The court found that dictionary definitions consistently describe windstorms as storms with violent winds, and tornadoes are marked by violent winds. The court rejected arguments that tornadoes should be treated as separate from windstorms, noting that a tornado is a windstorm in and of itself, regardless of whether it is a subset of a broader storm involving precipitation.
Financial Impact on Homeowners
This ruling has major financial consequences. Windstorm deductibles are often much higher than standard deductibles on homeowners policies, sometimes thousands of dollars more. For example, with a 2% windstorm deductible on a $400,000 home, homeowners face an $8,000 deductible compared to typical standard deductibles of $1,000 to $2,000.
What This Means Going Forward
The decision provides clarity for insurers and settles what the previously disputed territory was. Homeowners can no longer argue that tornado damage should fall under lower standard deductibles. The ruling emphasizes the importance of reviewing your insurance policy to understand your windstorm deductible and planning accordingly, especially given Texas's increasing tornado activity.
