Insurance will not cover some losses caused by Hurricane Sandy

Hurricane Sandy ripped through the East Coast on October 29, 2012. New York and New Jersey were hit the hardest and suffered the most property damage. Every state, from Maine to Virginia, experienced some degree of destruction. Unfortunately, many home and business owners are learning that their insurance policies do not cover all of their financial losses.

Insurance may not cover flood damage

Hurricane Sandy caused major flooding in areas that had not previously suffered flood damage. Standard homeowners insurance policies do not cover property damage caused solely by floods. Homeowners who did not purchase separate flood insurance policies can suffer losses from uninsured flood damage that will cost hundreds of thousands of dollars to repair.

Mortgage banks require homeowners with homes near the shore to purchase flood insurance. Most commercial insurance companies do not offer flood insurance. Flood insurance in the United States is generally purchased through the National Flood Insurance Program offered by the federal government. Homeowners who purchased flood insurance policies separately are often disappointed to learn that their expensive policies do not cover all property damage losses caused by flooding. The National Flood Insurance Program only insures up to $ 250,000 in property damage and up to $ 100,000 in home contents damage. Also, flood insurance does not cover damage to personal property located in the basement of a home. Homeowners with fully furnished basements will not receive insurance funds to replace the cost of furniture and personal belongings in their basement.

Insurance will cover vehicle losses damaged by Hurricane Sandy

Junk cars littered with mud and debris were a common sight along the East Coast after Hurricane Sandy. Fortunately, comprehensive auto insurance policies provide coverage for auto damage from floods.

Business interruption insurance will not cover all business interruption losses

East Coast businesses were forced to close due to Hurricane Sandy. However, many insurance companies refuse to pay business interruption claims caused by the storm. Insurance companies will generally only pay business interruption losses if the business suffered direct physical damage. However, businesses that did not suffer property damage still suffered business interruption losses. Breakdowns in public transportation systems and flooded roads made it difficult or impossible for businesses to open for days after Hurricane Sandy.

Insurance coverage is helping the recovery effort, but many uninsured losses remain

Insurance company payments are helping to rebuild parts of the East Coast devastated by Hurricane Sandy. However, home and business owners are finding that their insurance companies will not cover all of the financial losses caused by the storm.

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