How to use
Use this matrix at LOI on any deal in a catastrophe-exposed state. Rows summarize residual-market structure, deductible bands, primary catastrophe perils, and lender-treatment notes for 16 catastrophe-exposed jurisdictions. Pair with a coastal- or wildfire-experienced commercial broker. Not insurance, legal, or tax advice, engage qualified specialists on every deal.
How to use the matrix
Identify the state and primary peril (named storm, flood, wildfire, earthquake) from the deal's location. Read the residual market structure column. Florida Citizens, TWIA, Louisiana Citizens, California FAIR Plan, North Carolina IUA, and confirm whether the asset's location triggers eligibility for the residual pool, the typical lender treatment, and the standard structural overlay (excess wind, DIC, parametric supplement).
Bring the matrix into the LOI broker call. Confirm the named-storm deductible band, the state-pool eligibility position, and the wind-buy-down or DIC option before signing the LOI, not at closing.
Catastrophe-exposed state matrix
Bands and pool structures are illustrative; confirm with a state-licensed broker on every deal. Pricing has hardened materially across most listed jurisdictions through 2023 to 2026 reform cycles per state DOI annual reports.
Residual market structure, deductible bands, and lender-treatment notes, 16 catastrophe-exposed states (illustrative; confirm with state-licensed broker).
| State | Primary peril(s) | Residual market | Named-storm deductible band | Lender-treatment notes |
|---|---|---|---|---|
| Florida | Named storm, flood | Citizens Property Insurance Corp. | 5% to 10% tier-one coastal | Wind buy-down common; excess flood required above NFIP; CMBS / agency may tighten DSCR 25 to 50 bps. |
| Texas | Named storm, flood, hail | TWIA (tier-one coastal) | 3% to 5% tier-one coastal | TWIA + private excess wind standard; lender confirms TWIA assessment exposure. |
| Louisiana | Named storm, flood | Louisiana Citizens Property Insurance Corp. | 5% to 10% coastal parishes | Multiple admitted-market withdrawals post-Ida; excess wind from E&S; named-storm reserve common. |
| North Carolina | Named storm, flood | NC Insurance Underwriting Association (Beach Plan) | 3% to 5% tier-one coastal | Beach Plan + private excess wind on coastal CRE; sound-side exposure assessed separately. |
| South Carolina | Named storm, flood | SC Wind & Hail Underwriting Assoc. | 3% to 5% tier-one coastal | Wind pool + private excess wind on coastal CRE; flood overlay required in SFHA. |
| Georgia | Named storm, flood, tornado | No standalone wind pool; admitted-market | 2% to 5% coastal | Coastal Georgia generally still admitted-market writeable; tornado / hail belt inland. |
| Alabama | Named storm, flood | Alabama Insurance Underwriting Assoc. (Beach Pool) | 3% to 5% tier-one coastal | Beach Pool + private excess wind on coastal CRE; Mobile / Baldwin counties most affected. |
| Mississippi | Named storm, flood | Mississippi Windstorm Underwriting Assoc. | 3% to 5% tier-one coastal | MWUA + private excess wind on coastal CRE; assessment exposure noted by lenders. |
| Virginia | Named storm, flood | VA Property Insurance Assoc. (Beach & Fire) | 2% to 5% tier-one coastal | VPIA limited to small commercial; larger CRE on admitted / E&S excess wind. |
| California | Wildfire, earthquake | California FAIR Plan (commercial wildfire) | n/a (named-peril coverage) | FAIR Plan base + DIC stacked above; PML > 20% SEL triggers EQ requirement on most lenders. |
| Oregon | Wildfire | Oregon FAIR Plan (residential primary) | n/a | Admitted-market retreat in WUI zones; commercial wildfire from E&S; defensible-space documentation prudent. |
| Colorado | Wildfire, hail | Colorado FAIR Plan (effective 2025) | n/a | WUI Front Range commercial wildfire from E&S; hail-belt deductibles 1% to 5% on roof. |
| Hawaii | Hurricane, wildfire, volcanic | Hawaii Hurricane Relief Fund (residential) | 2% to 5% hurricane | Volcanic exclusions noted on most policies; commercial hurricane from admitted + E&S. |
| New York | Named storm, flood | NY Property Insurance Underwriting Assoc. (NYPIUA) | 2% to 5% coastal Long Island / NYC | Long Island and NYC five-borough wind exposure underwritten by E&S; SFHA flood material in lower Manhattan / Brooklyn waterfront. |
| New Jersey | Named storm, flood | NJ Insurance Underwriting Assoc. (Coastal Plan) | 2% to 5% coastal counties | Shore counties wind from E&S; SFHA flood material on shore CRE. |
| Oklahoma | Tornado, hail, named storm (south) | No standalone catastrophe pool; admitted-market | 1% to 5% tornado / hail belt | Hail / wind deductibles 1% to 5%; tornado overlay underwritten by admitted-market. |
Lender treatment of state-pool layers
Lender treatment of state-pool wind / wildfire layers is generally consistent across CMBS, agency, life-co, and bank programs: the state pool may serve as a base layer only, with private excess wind / wildfire stacked above to reach full replacement cost. The mortgagee clause attaches to both the state pool and the excess layers; clause review at closing is non-negotiable.
- Florida Citizens / TWIA / Louisiana Citizens, accepted as base wind layer; excess wind from E&S required above the pool cap.
- California FAIR Plan, accepted as base named-peril layer; DIC policy required to broaden to all-risk and full replacement cost.
- NC IUA / SC Wind & Hail Pool / AL & MS Beach Pools, accepted as base wind layers with private excess wind stacked above.
- Lender sizing: tighter debt yield / DSCR floors typical on coastal assets, 25 to 75 bps relative to comparable inland deals.
- Force placement on lapsed coverage: 2x to 4x normal premium added to loan balance per loan-document covenants.