In a recent decision, the Texas Supreme Court held that a tornado qualifies as a “windstorm” under a homeowners insurance policy, allowing the insurer to apply a higher windstorm deductible to the insureds’ claim. 1 The case arose after a Dallas-area home was damaged in the October 2019 tornado outbreak. The insurer applied a 2% windstorm deductible, reducing the payout by tens of thousands of dollars. The homeowners argued that because the policy did not define “windstorm,” and because “tornado” and “windstorm” are sometimes treated as distinct terms in statutes and common usage, the deductible should not apply.

Under Texas law, if a policy term is ambiguous, meaning it is subject to two or more reasonable interpretations, the court must adopt the interpretation most favorable to the insured. The homeowners’ position was that the undefined term “windstorm” was at least reasonably debatable. Had the court found ambiguity, it would have been required to construe the policy in favor of coverage and against the higher deductible.

The court, however, concluded that windstorm unambiguously includes tornadoes. Relying on dictionary definitions and prior case law, the court applied the term’s plain and ordinary meaning and rejected the argument that technical distinctions created ambiguity. Because the court found no ambiguity, it never reached the rule requiring construction in favor of the insured.

From a policyholder perspective, the lesson is straightforward. Insurance policies are drafted entirely by carriers. If an insurer intends for a tornado to trigger a higher windstorm deductible, the solution is simple: define windstorm to expressly include tornadoes. One sentence in the definitions section could eliminate the dispute altogether. When significant percentage deductibles are at stake, clarity should not depend on post-loss litigation. Clear drafting protects both sides and avoids forcing courts to resolve disputes that precise policy language could have prevented.

Chip Merlin previously wrote about this case at the lower level in Is a Tornado a Windstorm? A Texas Perspective on the Term ‘Windstorm’. I also suggest you read What Is a Windstorm? A California Perspective.

1 Privilege Underwriters Reciprocal Exchange v. Mankoff, No. 24-0132, — S.W.3d —, 2026 WL 406028 (Tex. Feb. 13, 2026).