Hurricane Deductibles Won’t Apply for Sandy in Pennsylvania
Delaware, Pennsylvania, Rhode Island and the District of Columbia have declared that hurricane deductibles won’t be applicable for Sandy-related claims in their jurisdictions. They are joining New York, New Jersey, Maryland and Connecticut that made similar announcements after Sandy slammed into the New Jersey shoreline.
Pennsylvania Gov. Tom Corbett announced last Thursday, Nov. 1, that Pennsylvania homeowners will not have to pay hurricane deductibles on insurance claims stemming from damage caused by Sandy.
“Insurance deductibles could have added significant costs to Pennsylvanians already struggling to clean up and rebuild after Hurricane Sandy,” said Gov. Corbett. “Insurance companies have deployed catastrophe teams to Pennsylvania and they have been advised that hurricane deductibles should not be applied to any homeowner’s insurance claims.”
Pennsylvania regulators said some homeowner’s insurance policies for properties in Pennsylvania have special “hurricane,” “tropical storm” or “named storm” deductibles based on a percentage of a property’s insured value. These deductibles typically range from one percent of a home’s insured value to five percent.
“We are very pleased with the initial, proactive response we’re seeing from insurance companies and their commitment to helping Pennsylvanians recover,” Pennsylvania Insurance Commissioner Michael Consedine said. “Insurance companies are experts in managing risk and responding to disaster. We will actively monitor the insurance industry to ensure they are fulfilling their commitments to their policyholders.”
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