Government Interference in Private Industry?
 

Ok...I don't get this. Why don't they have to pay their deductible? If not the policy holder, then who? Is he saying that the state is going to pick up the deductible or that the insurance company is going to have to do it?

Does anyone know if this is customary for hurricanes? I've suffered tornado damage in the past when I lived in Indiana, as did my sister, my parents and many of our neighbors - and we all had to pay our deductible any time we had damage.

Policies are personal - and the deductible is something that the holder of the policy has control over - it's their decision as to how much they want to pay for the policy as opposed to how high or low of a deductible they want to be stuck with should they have a claim.

Anyhow, I don't think this is right - unless I'm misreading it.

Cuomo: Homeowners Will Not Pay Hurricane Deductibles - Five Towns, NY Patch

Re: Government Interference in Private Industry?
 

Thug government at work. Wonder what premiums for that sort of insurance will be in the future after this little stunt.

Re: Government Interference in Private Industry?
 

Maybe hurricane deductibles are different from storm deductibles and something different kicks in depending on what kind of damage it is called or what triggered the damage?

I know that Hurricane Sandy was downgraded to a tropical storm at some period in time - I don't know for sure if that was before or after it hit New York. Maybe that's the difference and he's saying that the insurance companies can't charge the higher hurricane deductible but must, instead, charge the lower storm damage deductible?

That's the only thing I can think of which would make any kind of sense.

Re: Government Interference in Private Industry?
 

Sounds like a strong arm tactic. Most people you would think, would be happy to pay a deductable if it means coverage. I wonder if he is just trying to leverage against denied claims?

Re: Government Interference in Private Industry?
 

Actually not a stunt. As the link shows, if it's a hurricane, deductible is 1-5% of value which could run up to $20K on a $400K house. If it's storm damage, the deductible could be $500 or $1000. The storm was just below hurricane strength when it hit NY ( though gusts were over 75 mph) so it was not classified as a hurricane. He's making sure people don't get the shaft... Had it hit with sustained winds of 76 mph, it would have been different.....


‘Hurricane Deductible’: Technicality Could Cost (or Save) Homeowners Thousands | TIME.com

>>>With most policies, there is a deductible, usually $500 or $1,000, which a homeowner must pay before insurance covers the rest. But CNN Money, MoneyWatch, and others have recently highlighted the fact that a “hurricane deductible” provision can wind up costing a homeowner much more. In states where such deductibles are allowed—including New York, New Jersey, Connecticut, and most of the East Coast—a homeowner may be required to pay 1%, 5%, perhaps even as much as 10% (in Florida) of their property’s value before the insurer coughs up a single penny.>>>>>

Re: Government Interference in Private Industry?
 

Can Cuomo interfere in storm insurance contracts? Frankel - CNBC

Re: Government Interference in Private Industry?
 

stay tuned......will depend on wording