Governor Andrew Cuomo announced Wednesday afternoon that New York homeowners affected by Hurricane Sandy should not be subject to hurricane deductibles -- potentially large sums of money homeowners often must pay before hurricane insurance kicks in.
“Homeowners should not have to pay hurricane deductibles for damage caused by the storm and insurers should understand the Department of Financial Services will be monitoring how claims are handled,” Cuomo said, according to a statement.
While most home insurance deductibles are flat fees of around $500 to $1,000, hurricane deductibles generally demand homeowners to pay anywhere from 1 to 5 percent of the property's value up front. New York is one of 18 states that permit insurance companies to charge hurricane deductibles.
According to the governor's statement, hurricane deductibles should not be triggered because Sandy did not sustain hurricane-force winds when it hit New York.
You can read the governor's full statement here.
Also on HuffPost:
During a hurricane, there are often separate deductibles for high force winds. The deductibles are often expensive and can be up to 5 percent of the home's insured value, <a href="http://www.hlntv.com/article/2012/10/29/hurricane-sandy-flood-insurance-damage">according to HLN.</a>
Most policies cover damage caused by wind and will cover flooding caused by a tree crashing into the roof, <a href="http://www.usatoday.com/story/money/personalfinance/2012/10/29/hurrican-sandy-homeowners-insurance/1666077/">according to USA Today.</a>
Most home insurance policies do not cover flooding. Flood insurance usually has to be purchased separately, <a href="http://www.farmers.com/flood_insurance.html">according to Farmers.com.</a>
Flooding At Shorelines
Mortgage lenders usually force homeowners living near shorelines to have federal flood insurance, <a href="http://www.reuters.com/article/2012/10/29/us-storm-sandy-claims-idUSBRE89S12C20121029">according to Reuters.</a> So you're likely covered if you don't own your home outright and you live near a shoreline.
Federal Disaster Areas
Even when a federal disaster area is declared, assistance comes in the form of loans that often have to be repaid, according to <a href="http://www.washingtonpost.com/business/economy/homeowners-may-learn-limits-of-their-insurance/2012/10/29/2dac842a-21f9-11e2-ac85-e669876c6a24_story.html">the Washington Post.</a>
Anti-Concurrent Causation Clauses
Many insurance policies do not cover damage caused my multiple sources, like wind and flooding, <a href="http://www.reuters.com/article/2012/10/29/us-storm-sandy-claims-idUSBRE89S12C20121029">according to Reuters.</a>
Generally, damage to cars caused by falling trees and flooding is only covered by comprehensive insurance, not by liability insurance, <a href="http://www.foxbusiness.com/personal-finance/2011/08/27/flood-damaged-cars-your-top-questions-answered/">according to Fox Business.</a>
Renters often have to pay separately for flood insurance, <a href="http://blogs.smartmoney.com/advice/2011/08/25/will-my-insurance-cover-hurricane-damage/" target="_hplink">according to Smart Money.</a>