Home Owners Likely to Save on Deductibles From Sandy
The downgrade of Hurricane Sandy to a “post-tropical cyclone” by the time it struck the East Coast could potentially save home owners thousands of dollars in home insurance deductibles, CNBC reports.
Unlike basic homeowner policy deductibles, hurricane deductibles are based on a percentage — such as 5 percent — of the property’s insured value. CNBC provides the following example: If a home is insured for $300,000, that could equate to a $15,000 deductible for a home owner. On the other hand, the average home owner policy deductible is between $500 and $1,000.
Consequently, the difference to home owners’ pocketbooks will likely be significant.
“We have informed the insurance industry that hurricane deductibles are not triggered because Sandy did not have sustained hurricane-force winds when it made land in New York,” says Benjamin Lawsky, New York’s superintendent of financial services. “We will be working with insurers to help them respond as quickly as possible to home owners who need to file claims. And we will be sending our mobile command center to hard-hit areas to help consumers with insurance questions and problems.”