The New York Insurance Department has issued a media alert stating that Irene had been designated a tropical storm, not a hurricane, when it reached New York and therefore hurricane deductibles should not apply on homeowners' insurance policies.
The media alert says homeowners “should not have to pay this deductible and insurers should be aware that the Department will make sure they are not hitting consumers with a hurricane deductible, which is often a full five percent of the insured property's value.”
The alert quotes Benjamin M. Lawsky, superintendent of the Department of Financial Services, as saying, “While Irene obviously started out as a hurricane, by the time it reached New York it was a tropical storm, with winds in the 60 mph range.”
Direct questions to NAMIC State Affairs Manager Paul Tetrault.
Posted: Friday, September 02, 2011 3:12:40 PM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.