A New York and New Jersey Lawyer Who Represents Policyholders and Beneficiaries in Life Insurance Denial Cases

Now that Hurricane Sandy has passed through the Northeast, leaving mass devastation in its wake, the resulting property damage is estimated to be in the billions of dollars.

Property policies can differ on how they cover, or do not cover, water damage. Now is a good time to review your policy carefully.

Policies often will cover wind damage, but exclude water damage. You may recall that this was the focus of a mass coverage dispute arising from the damage caused by Hurricane Katrina. Some policies that cover water damage have a specific limit for coverage. Some policies cover only certain types and causes of water damage. For instance, I have seen an Allstate policy that does not cover damage caused by rain water to the interior of a building, unless it has first sustained damage to the roof or walls by the direction action of wind or hail.

Most home and property insurance policies do not cover flooding. There is a waiting period of 30 days in order for flood insurance to take effect. Insurers will broadly interpret exclusions to avoid paying claims for any event that could remotely be considered flooding.

Of course, after an event like Hurricane Sandy, policyholders are stuck with the insurance coverage that they have when making a claim. But insurance policyholders should keep the foregoing points in mind in the future when shopping for property and homeowner insurance.

Here are two recent NY Daily News articles that give tips on filing a claim and also that New York officials have declared that hurricane deductibles should not apply, because the storm did not achieve hurricane force winds when it hit land.

You can read them here and here.

One Response to “Hurricane Sandy Insurance Coverage Tips”

  1. Colt says:

    This is where the coverage you have makes such a difference. I always say that lower cost coverage can come back and haunt you. Make sure you know what you are getting and don’t trust rates that seem too low to be true.

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