Anybody else notice a pattern here? Insurance companies set their rates assuming hurricane deductibles will be applied in the event of a loss from, you know….a hurricane. And then the politicians intimidate the industry into just eating those deductibles….how can you set rates when any time there is an actual loss one of the main factors in determining the premium is going to be ignored when the claims occur?
Such benevolence! On the other side of this issue, though- wasn’t it dtermined not to be a hurricane once it mixed with cold air? Unless this was the case, I agree, Cuomo has no right to waive his wand over a predetermined deductible which, as you mention, was considered in what is now an INADEQUATE RATE. Thank goodnes he’s not the governor of Texas or Florida!
The government will monkey around until carriers decide they will no longer offer hurricane coverage. Back in the 90s an eastern seaboard state told a national insurance company that they were not allowed to increase their rates on professional liability, the result was the carrier pulled out of that state until the state realized it’s folly and relented.
I think what they are saying is that Sandy was downgraded from a hurricane before it came on shore, so therefore a hurricane deductible should not apply. If the policies have a hurricane only deductible, then maybe this is correct. Look for named storm deductibles in the future.
Last I knew it was considered a ‘named storm deductible’. I agree with anonymous and reader. They can keep going with this until the government provides us all with wind coverage (they already cover my house). Yet Florida can get hit by 4 hurricanes in one season and have to pay one hurricane deductible. Arent you out more money if you’re hit by two hurricanes rather than just one? No disrespect to the northeast but way to screw up the rates.
According to the National Weather Service, National Hurricane Center bullitens, Post tropical storm Sandy at landfall had 80 MPH sustained winds. how is not sustained hurricane force winds?
Bulletin: Hurricane Sandy Advisory Number 30 dated: 10/29/2012 5:00 PM EDT location 38.8N 74.4W about 40 miles South of Atlantic City, NJ. Max wind speed 90 MPH
Bulletin: Hurricane Sandy Advisory Number 30 update dated: 10/29/2012 7:00 PM EDT location 39.1N 74.4W about 20 miles South of Atlantic City, NJ. Max wind speed 85 MPH Sandy becomes Post Tropical Cyclone Sandy.
Bulletin: Hurricane Sandy Advisory Number 30 update dated: 10/29/2012 8:00 PM EDT location 39.4N 74.5W about 5 miles South West of Atlantic City, NJ. Post Tropical Cyclone Sandy makes landfall along the coast of southern New Jersey. Max sustained wind speed 80 MPH
Bulletin: Hurricane Sandy Advisory Number 30 update dated: 10/29/2012 9:00 PM EDT location 39.6N 74.6W about 15 miles North West of Atlantic City, NJ. Post Tropical Cyclone Sandy reports a wind gust of 79 MPH at JFK international airport and a 90 MPH wind recorded at Islip, NY reported earlier this evening.
It’s a definition. HURRICANE has WARM winds. Once it combines with cold air- as it did in the Northeast- it is no longer defined as a hurricane. I have no qualms with what it is called. However, I do have a problem with the government coming in and telling the private insurance carrier to waive deductibles. The insured property owner was given a reduced rate in consideration of such deductible. Waiving the deductible depletes the necessary funding for such catastrophic events. Who’s going to pay the insurance carriers for that short fall? The government’s benevolence with taxpayers’ money is nothing short of mockery of its people!
Hurricane – An intense tropical weather system with a well defined circulation and maximum sustained winds of 74 mph (64 knots) or higher.(per NOAA)
It says nothing about the classification changing due to cold air. Also, many hurricane become downgraded to tropical storms before they cause damage in the interior of the Gulf Coast states, but if our governors suddenly dictated that no “hurricane” (called wind/hail here in Alabama for that reason) would be applied then all hell would break loose. Everyone would cry foul exclaiming as they have for decades–“that’s what they get for living on the Gulf Coast”. I live more than 100 miles from the coast, but we are subjected to the wind/hail deductibles as if we were only a few miles away. Maybe insurance companies should develop Nor’easter deductibles. If hurricane deductibles do not apply when a hurricane named Sandy that is that massive and destructive, when should they apply in the Northeast? Ever? Cold air will usually filter into these storms there, but it still started as a hurricane just like the ones that hit us that have been downgraded to tropical storm status. They are exempt because they have colder air? I feel for these people. But how are they different from those who lost everything from Andrew or Katrina or Rita? Oh that’s right–cold air.
Good point, although Cuomo didn’t say there wouldn’t be a “named Storm” deductible – the storm still had a name even though it wasn’t a hurricane when it hit New York. Many property policies are written this way now. Maybe hte carriers can get around it that way, probably not.
I think this is clever politics. The industry as a whole watches wind speed and determines if it is a hurricane or not when it makes landfall. I think Cuomo is just being savvy for taking credit for this.
Actually it wasn’t categorized as a Cat 1 at landfall in NJ. Even though there were 80MPH sustained winds the NWS downgraded it to a “post tropical cyclone” less than an hour before it hit. Therefor no hurricane ded in NJ.
Interested- Many states in the northeast do not allow mandatory wind or named storm deductibles. Such as RI and NJ. In fact RI doesn’t even allow an optional wind deductible for people that may want to lower their premiums.
Contract law? Who needs it when you have an election to win. Homeowners accepted the risk, insurers budgeted for the risk. Too bad insurers aren’t represented in the electoral college. If they were, perhaps contract law would mean more to pandering politicians.
Let me guess it must be election year. If the politicians keep this up I do not blame the insurance carriers for not writing exposed properties and implementing ACV coverages or plain flat deductibles to avoid government reform. I hope some carriers stand up to the states.
I choose a larger deductible to make my premium more affordable. The government then says waive all deductibles. Nothing good will come of this going forward. Those with small deductibles are now discriminated against. Where do I go to collect the money difference as if I had chosen a larger deuctible? Who will actually pay for the waived deductible ? Will we ever know. One more reason to avoid doing business in New York
Much of the damage was done when Sandy was still at sea at a hurricane level. Insurance priced the premium for Hurricane deductible and that is what the insured agreed upon and paid. How is this fair to people with larger or smaller deductibles?
It was not a Cat 1 or Cat 2 Hurricane when it made landfall. Hurricane deductibles are only triggered for most carriers after a Category 2 or higher storm makes landfall. Since Sandy was a category 1 storm and made land fall as a tropical storm, the Hurricane deductible does not apply. There are a small percentage of carriers that have triggers at Cat 1 storm but most are triggered at Cat 2 storm.
J Muniz- Maybe in your state but not in the northeast. A hurricane deductible usually states sustained winds of 74mph or higher so a cat 1 should do it. The difference here is that the NWS downgraded it and they also didn’t issue a warning north of NC. In some northeast states the warning is the trigger regardless of wind speed but with the lack of warnings and the downgrade no triggers.
The information is partially correct, the States did say the “hurricane” deductibles would not be used, but the regular all peril deductible which is usually much less still applies… Interesting how the media hears what tey want to hear on things like this.
Please help me, I am wondering I paid the $15000, deductibles to my homeowner’s insurance . I live in Rockaways,Queens, NY. My roof was destroyed. My insurance is with Llyods Of London. Why do I have to pay and others do not. I filed this complain to the Governor’s office. They claim its because the company is not based in US. I do not understand, why I can not get this included to Gov.Coumo’s declarations that homeowners need not to pay the deductibles. I am shooting this all who would be of help.
They did this with Katrina but at least with Katrina they allowed a assesment for 2 years to get some of the money back. My guess is that some carriers will leave the state after all said and done.
So the Homeowners contract means nothing anymore and the Governor can just waive the provisions and declare the deductible null and void. Why would a carrier want to do business in these blue states when their contracts mean little? The customers accepted the coverage when it was written and knew what it covered and what the deductible would be if a loss occurred. Progressive Politicians are our worst nightmare and someone will have to bear the cost of this and that means me and you.
Agent,
you made this comment at 2:54.
JM noted in his/her comment at 2:17 that the deductible would not apply per the terms of the contract, regardless of what a politician says.
JM’s comment was a full 37 min before you and only one person commented in between you and JM.
So, are you an ignorant Agent, or such a slathering hater that facts don’t matter to you?
Hate is toxic and addictive so I pray that you let hate go. Have your difference of opinion and accept others for who they are. I can think of many many nightmares worse than progressive politicians.
Lose the drama.
I would like to see follow up on this Cuomo adjustment. Our state has the named storm language, I do wonder if the policies in NY are named storm or hurricane. Then there’s the wind/hail deductible issue. Many carriers are going to a percent of coverage there, too.
Perhaps the hurricane deductible has different terminology in those states and would have not applied anyway. That’s why the carrier’s so readily agreed to it. So Cuomo gets all the credit for something the insurance companies would have done anyway, figures.
Gee, if they don’t have to pay their deductible, why should I pay mine for any claim. I am sure that I can get a liberal judge to see it my way and if that doesn’t work, I can hope the claim happens in an election year!
This is nt an election year for NY Governor nor NJ Governor (Christie made the sam proclamation). If a Hurricane does not make landfall, the hurricane deductible does not apply, PERIOD. It is not that complicated and it is not political.
The policyholders’ regular deductible will still apply. They are not completely off the hook.
it will interesting to see if the state will approve insurers to change language to named storm instead of hurricane deductibles as Lady Regulator’s state allows. Highly unlikely in the near future.
Now a lot of policies, especially out of the surplus lines market which has been writing more coastal NY and NJ business, have “wind and hail” deductibles which apply to a windstorm or hail loss (not a hurricane or named storm). See CP 03 20 or 21 for example which are the ISO multiple deductible forms. These policies’ deductibles should apply to windstorm damage though folks are still waiting to see what these companies say about it. They would also apply to damage from an unnamed “NorEaster” for that matter.
If a policy has a named storm deductible, then Sandy retained its name even when it decame a post tropical depression so again the d/d would apply.
As a land locked midwesterner, I was wondering what kind of ‘get out of jail’ ruling our insurance commissioner could use if we get his with an earthquake and incur our eq deductibles, which often run 5-20%…will we be able to say the actual earthquake was 7.7, but the actual damage was caused by aftershocks, which are to be excluded from the deductibles?
The irony here is other policyholders are eating the add’l funds the carriers will be paying out…yes, the carriers will pay first, but those costs will be drained from remaining resv funds, and since carriers cannot count on setting rate according to risk, they will ‘spread it around’ (to quote our fearless leader).
With most property insurers having Anti-Concurrent Cause Clauses excluding any coverage for loss, not having a deductible’s only a meaningless technicality.
Anybody else notice a pattern here? Insurance companies set their rates assuming hurricane deductibles will be applied in the event of a loss from, you know….a hurricane. And then the politicians intimidate the industry into just eating those deductibles….how can you set rates when any time there is an actual loss one of the main factors in determining the premium is going to be ignored when the claims occur?
Such benevolence! On the other side of this issue, though- wasn’t it dtermined not to be a hurricane once it mixed with cold air? Unless this was the case, I agree, Cuomo has no right to waive his wand over a predetermined deductible which, as you mention, was considered in what is now an INADEQUATE RATE. Thank goodnes he’s not the governor of Texas or Florida!
Depends on what your definition of “is” is. What “is” a hurricane and what “is” a hurricane deductible? Or is this an election year?
The government will monkey around until carriers decide they will no longer offer hurricane coverage. Back in the 90s an eastern seaboard state told a national insurance company that they were not allowed to increase their rates on professional liability, the result was the carrier pulled out of that state until the state realized it’s folly and relented.
I think what they are saying is that Sandy was downgraded from a hurricane before it came on shore, so therefore a hurricane deductible should not apply. If the policies have a hurricane only deductible, then maybe this is correct. Look for named storm deductibles in the future.
Last I knew it was considered a ‘named storm deductible’. I agree with anonymous and reader. They can keep going with this until the government provides us all with wind coverage (they already cover my house). Yet Florida can get hit by 4 hurricanes in one season and have to pay one hurricane deductible. Arent you out more money if you’re hit by two hurricanes rather than just one? No disrespect to the northeast but way to screw up the rates.
According to the National Weather Service, National Hurricane Center bullitens, Post tropical storm Sandy at landfall had 80 MPH sustained winds. how is not sustained hurricane force winds?
Bulletin: Hurricane Sandy Advisory Number 30 dated: 10/29/2012 5:00 PM EDT location 38.8N 74.4W about 40 miles South of Atlantic City, NJ. Max wind speed 90 MPH
Bulletin: Hurricane Sandy Advisory Number 30 update dated: 10/29/2012 7:00 PM EDT location 39.1N 74.4W about 20 miles South of Atlantic City, NJ. Max wind speed 85 MPH Sandy becomes Post Tropical Cyclone Sandy.
Bulletin: Hurricane Sandy Advisory Number 30 update dated: 10/29/2012 8:00 PM EDT location 39.4N 74.5W about 5 miles South West of Atlantic City, NJ. Post Tropical Cyclone Sandy makes landfall along the coast of southern New Jersey. Max sustained wind speed 80 MPH
Bulletin: Hurricane Sandy Advisory Number 30 update dated: 10/29/2012 9:00 PM EDT location 39.6N 74.6W about 15 miles North West of Atlantic City, NJ. Post Tropical Cyclone Sandy reports a wind gust of 79 MPH at JFK international airport and a 90 MPH wind recorded at Islip, NY reported earlier this evening.
It’s a definition. HURRICANE has WARM winds. Once it combines with cold air- as it did in the Northeast- it is no longer defined as a hurricane. I have no qualms with what it is called. However, I do have a problem with the government coming in and telling the private insurance carrier to waive deductibles. The insured property owner was given a reduced rate in consideration of such deductible. Waiving the deductible depletes the necessary funding for such catastrophic events. Who’s going to pay the insurance carriers for that short fall? The government’s benevolence with taxpayers’ money is nothing short of mockery of its people!
Hurricane – An intense tropical weather system with a well defined circulation and maximum sustained winds of 74 mph (64 knots) or higher.(per NOAA)
It says nothing about the classification changing due to cold air. Also, many hurricane become downgraded to tropical storms before they cause damage in the interior of the Gulf Coast states, but if our governors suddenly dictated that no “hurricane” (called wind/hail here in Alabama for that reason) would be applied then all hell would break loose. Everyone would cry foul exclaiming as they have for decades–“that’s what they get for living on the Gulf Coast”. I live more than 100 miles from the coast, but we are subjected to the wind/hail deductibles as if we were only a few miles away. Maybe insurance companies should develop Nor’easter deductibles. If hurricane deductibles do not apply when a hurricane named Sandy that is that massive and destructive, when should they apply in the Northeast? Ever? Cold air will usually filter into these storms there, but it still started as a hurricane just like the ones that hit us that have been downgraded to tropical storm status. They are exempt because they have colder air? I feel for these people. But how are they different from those who lost everything from Andrew or Katrina or Rita? Oh that’s right–cold air.
Good point, although Cuomo didn’t say there wouldn’t be a “named Storm” deductible – the storm still had a name even though it wasn’t a hurricane when it hit New York. Many property policies are written this way now. Maybe hte carriers can get around it that way, probably not.
I think this is clever politics. The industry as a whole watches wind speed and determines if it is a hurricane or not when it makes landfall. I think Cuomo is just being savvy for taking credit for this.
Is there any statute that defines the hurricane deductible in NY like we have in FL? The storm was still classified as a Cat 1 at landfall in NJ.
Actually it wasn’t categorized as a Cat 1 at landfall in NJ. Even though there were 80MPH sustained winds the NWS downgraded it to a “post tropical cyclone” less than an hour before it hit. Therefor no hurricane ded in NJ.
Interested- Many states in the northeast do not allow mandatory wind or named storm deductibles. Such as RI and NJ. In fact RI doesn’t even allow an optional wind deductible for people that may want to lower their premiums.
Gee, it is really nice of the NY Dept to reform a policy after the fact.
Contract law? Who needs it when you have an election to win. Homeowners accepted the risk, insurers budgeted for the risk. Too bad insurers aren’t represented in the electoral college. If they were, perhaps contract law would mean more to pandering politicians.
Let me guess it must be election year. If the politicians keep this up I do not blame the insurance carriers for not writing exposed properties and implementing ACV coverages or plain flat deductibles to avoid government reform. I hope some carriers stand up to the states.
I choose a larger deductible to make my premium more affordable. The government then says waive all deductibles. Nothing good will come of this going forward. Those with small deductibles are now discriminated against. Where do I go to collect the money difference as if I had chosen a larger deuctible? Who will actually pay for the waived deductible ? Will we ever know. One more reason to avoid doing business in New York
Much of the damage was done when Sandy was still at sea at a hurricane level. Insurance priced the premium for Hurricane deductible and that is what the insured agreed upon and paid. How is this fair to people with larger or smaller deductibles?
It was not a Cat 1 or Cat 2 Hurricane when it made landfall. Hurricane deductibles are only triggered for most carriers after a Category 2 or higher storm makes landfall. Since Sandy was a category 1 storm and made land fall as a tropical storm, the Hurricane deductible does not apply. There are a small percentage of carriers that have triggers at Cat 1 storm but most are triggered at Cat 2 storm.
J Muniz- Maybe in your state but not in the northeast. A hurricane deductible usually states sustained winds of 74mph or higher so a cat 1 should do it. The difference here is that the NWS downgraded it and they also didn’t issue a warning north of NC. In some northeast states the warning is the trigger regardless of wind speed but with the lack of warnings and the downgrade no triggers.
The information is partially correct, the States did say the “hurricane” deductibles would not be used, but the regular all peril deductible which is usually much less still applies… Interesting how the media hears what tey want to hear on things like this.
Hurricane deductible only applies with most carriers for Category 2 or higher Hurricanes.
Sandy made landfall as a tropical storm, so no deductible would have applied regardless whether or not Cuomo made this statement.
Please help me, I am wondering I paid the $15000, deductibles to my homeowner’s insurance . I live in Rockaways,Queens, NY. My roof was destroyed. My insurance is with Llyods Of London. Why do I have to pay and others do not. I filed this complain to the Governor’s office. They claim its because the company is not based in US. I do not understand, why I can not get this included to Gov.Coumo’s declarations that homeowners need not to pay the deductibles. I am shooting this all who would be of help.
They did this with Katrina but at least with Katrina they allowed a assesment for 2 years to get some of the money back. My guess is that some carriers will leave the state after all said and done.
So the Homeowners contract means nothing anymore and the Governor can just waive the provisions and declare the deductible null and void. Why would a carrier want to do business in these blue states when their contracts mean little? The customers accepted the coverage when it was written and knew what it covered and what the deductible would be if a loss occurred. Progressive Politicians are our worst nightmare and someone will have to bear the cost of this and that means me and you.
Agent,
you made this comment at 2:54.
JM noted in his/her comment at 2:17 that the deductible would not apply per the terms of the contract, regardless of what a politician says.
JM’s comment was a full 37 min before you and only one person commented in between you and JM.
So, are you an ignorant Agent, or such a slathering hater that facts don’t matter to you?
Hate is toxic and addictive so I pray that you let hate go. Have your difference of opinion and accept others for who they are. I can think of many many nightmares worse than progressive politicians.
Lose the drama.
Agent – I’m on your side in this one – however, Chris Christie is a progressive?
I would like to see follow up on this Cuomo adjustment. Our state has the named storm language, I do wonder if the policies in NY are named storm or hurricane. Then there’s the wind/hail deductible issue. Many carriers are going to a percent of coverage there, too.
Perhaps the hurricane deductible has different terminology in those states and would have not applied anyway. That’s why the carrier’s so readily agreed to it. So Cuomo gets all the credit for something the insurance companies would have done anyway, figures.
Gee, if they don’t have to pay their deductible, why should I pay mine for any claim. I am sure that I can get a liberal judge to see it my way and if that doesn’t work, I can hope the claim happens in an election year!
This is nt an election year for NY Governor nor NJ Governor (Christie made the sam proclamation). If a Hurricane does not make landfall, the hurricane deductible does not apply, PERIOD. It is not that complicated and it is not political.
The policyholders’ regular deductible will still apply. They are not completely off the hook.
it will interesting to see if the state will approve insurers to change language to named storm instead of hurricane deductibles as Lady Regulator’s state allows. Highly unlikely in the near future.
Governor Rick Scott should do the same in Florida next time a hurricane hits us!
Now a lot of policies, especially out of the surplus lines market which has been writing more coastal NY and NJ business, have “wind and hail” deductibles which apply to a windstorm or hail loss (not a hurricane or named storm). See CP 03 20 or 21 for example which are the ISO multiple deductible forms. These policies’ deductibles should apply to windstorm damage though folks are still waiting to see what these companies say about it. They would also apply to damage from an unnamed “NorEaster” for that matter.
If a policy has a named storm deductible, then Sandy retained its name even when it decame a post tropical depression so again the d/d would apply.
As a land locked midwesterner, I was wondering what kind of ‘get out of jail’ ruling our insurance commissioner could use if we get his with an earthquake and incur our eq deductibles, which often run 5-20%…will we be able to say the actual earthquake was 7.7, but the actual damage was caused by aftershocks, which are to be excluded from the deductibles?
The irony here is other policyholders are eating the add’l funds the carriers will be paying out…yes, the carriers will pay first, but those costs will be drained from remaining resv funds, and since carriers cannot count on setting rate according to risk, they will ‘spread it around’ (to quote our fearless leader).
With most property insurers having Anti-Concurrent Cause Clauses excluding any coverage for loss, not having a deductible’s only a meaningless technicality.