Delaware Business Insurance Update, Hurricane Deductible Applys or Maybe Not....

Along with the massive destruction that Hurricane Sandy brought to the NJ and NY coastline, it is also bringing a controversy that could cost or save millions for either insureds or insurance companies. Most insurance policies that cover coastal properties have hurricane deductibles. These deductibles are the out of pocket costs of property owners, and they apply when named hurricanes cause damage. Some of these deductibles can be as high as 10% of the property value. The insurance industry uses hurricane deductibles to reduce their exposure to paying out claims. Now here comes hurricane Sandy or.... extratropical depression Sandy..., and the insurance companies are surely going to want to apply their hurricane deductibles. So can they?   Here lies the controversy. Since the National Weather Service changed the description of Hurricane Sandy to Extra-Tropical Sandy, then maybe the hurricane deductibles don't apply. This will most likely go to the courts for a decision since millions of dollars are at stake. This is an insurance situation that really has not happened before. It seems that Sandy was a weather system that not only baffled the weather experts of today, but is also has the best insurance experts in the industry scratching their heads. Stay tuned on this one folks.  Until next time be carfeul out there and know your risks. K

G. Kevin Nemith, Small Business Insurance and Enterprise Risk Management Consultant serving , Delaware, Maryland, Pennsylvania, and New Jersey.
www.cncinsurance.com
www.bizinsurancetv.org

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