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November 02, 2012 at 06:37 AM
On orders from New York’s governor, insurers will not apply the hurricane deductible to insurance claims from Hurricane Sandy.
This morning, Gov. Andrew M. Cuomo (left) issued a statement that “homeowners will not have to pay potentially large hurricane deductibles on insurance claims” from Monday’s storm.
The New York State Department of Financial Services has informed insurers, the statement says.
“Homeowners should not have to pay hurricane deductibles for damage caused by the storm, and insurers should understand the Department of Financial Services will be monitoring how claims are handled,” Cuomo says.
Hurricane deductibles can range from 1 percent to 5 percent on a Homeowners’ policy. On a home insured for $300,000, the homeowner would have to pay for the first $15,000 of damage if the deductible was enforced.
Benjamin M. Lawsky, superintendent of financial services, says the deductibles are not being triggered because “Sandy did not have sustained hurricane-force winds when it made landfall in New York. We will be working with insurers to help them respond as quickly as possible to homeowners who need to file claims.”
