10/31/2012 06:29 pm ET Updated Oct 31, 2012

Cuomo: New York Homeowners Should Not Have To Pay Hurricane Deductibles

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.



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