In Sandy’s Wake: Tips on Homeowner’s Insurance

Thomas Crowley of Maran Corporate Risk Associates in Southampton, N.Y., reminds that most homeowner policies have included hurricane deductibles typically equal to up to 5 percent of an insured home’s coverage, which is in addition to the standard $1,000 deductible in most policies. Hurricane deductibles are triggered by a category 1, 2, or 3 hurricane, depending on the policy, and the trigger is usually based on the storm’s official classification at some time or geographical point before it makes landfall. Crowley points out that this can mean the deductible is triggered even if the storm is not a hurricane by the time it comes ashore, which is what happened when Sandy reached Atlantic City on Oct. 29. Additionally, most policies do not pay for flooding from a tidal surge or an accumulation of rainwater in the ground; a separate insurance policy is needed for that, one that is usually underwritten by the federal government. Flooding that stems from a breach in the roof or wall, a broken window, or a burst pipe would be covered, however, Crowley said. He explained that homeowner policies usually do not cover tree removal if it falls harmlessly in the backyard, but do if it hits the house, a fence, a shed, a pool, or the driveway. If the tree falls on a neighbor’s house, the neighbor is responsible for it, although the neighbor’s insurer might later seek reimbursement from the tree owner’s insurer. | Read More