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Last Post 12/13/2012 10:35 PM by  sbeau4014
Sandy - NHC debating removing name for deductible purposes
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Torrential
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10/28/2012 4:08 AM
    Here's a video conversation that occurred on the Weather Channel recently, between Brian Norcross and Jim Cantore.

    They raise some interesting questions, that could have far reaching legal implications for deductibles related to damage from hurricane Sandy. Some policies specify a "named storm" deductible. However, if the storm becomes subtropical before landfall, it technically loses its hurricane name, or perhaps should.

     It will make a big difference to many folks.

     If anyone has any thoughts on this, this is a good time to discuss what we see in our crystal balls.

    My instinct says that the carriers involved will try and stick a name to the storm at landfall, no matter what Sandy turns into, but how smart does a lawyer need to be to argue the policy pays for a regular Nor'easter? My guess is, not smart at all.

     The insurance commissioners will probably have the last say, but it will be interesting to see what happens.

     By the way, I'm available for immediate deployment, if anyone has any good work. Lots of experience here, and hungry. ;)

     

    Medulus
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    10/28/2012 11:21 AM
    Whether or not the storm is named will not likely make a lot of difference if the storm hits in the mid-Atlantic states. Unless much has changed in the five years I have been on carrier staff, these states do not generally have wind pools or policies with named storm deductibles. Policies with such features tend to be sold in southern coastal states. While wind might be an excluded peril on a policy in Florida, it will not be excluded in New Jersey or Pennsylvania. There will most likely not be named storm deductibles or separate wind policies north of the Mason Dixon.
    Steve Ebner CPCU AIC AMIM

    "With great power comes great responsibility." (Stanley Martin Lieber, Amazing Fantasy # 15 August 1962)
    CatAdjusterX
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    10/29/2012 6:14 AM
    Posted By Torrential on 28 Oct 2012 04:08 AM
    Here's a video conversation that occurred on the Weather Channel recently, between Brian Norcross and Jim Cantore.

    They raise some interesting questions, that could have far reaching legal implications for deductibles related to damage from hurricane Sandy. Some policies specify a "named storm" deductible. However, if the storm becomes subtropical before landfall, it technically loses its hurricane name, or perhaps should.

     It will make a big difference to many folks.

     If anyone has any thoughts on this, this is a good time to discuss what we see in our crystal balls.

    My instinct says that the carriers involved will try and stick a name to the storm at landfall, no matter what Sandy turns into, but how smart does a lawyer need to be to argue the policy pays for a regular Nor'easter? My guess is, not smart at all.

     The insurance commissioners will probably have the last say, but it will be interesting to see what happens.

     By the way, I'm available for immediate deployment, if anyone has any good work. Lots of experience here, and hungry. ;)

    .............................................................

    Regardless whether Sandy drops below hurricane threshold, she will stay Sandy until she drops below 34MPH or something like that.

    Nevertheless, as Steve pointed out NYC and the Atlantic Seaboard doesn't have the same insurance setups as these states whilst of course have had hurricanes in the past, not to an extent that insurers will drop coverage for wind perils and require a windpool. Interesting point though, great information. I like your avatar by the way  



    "A good leader leads..... ..... but a great leader is followed !!" CatAdjusterX@gmail.com
    Torrential
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    10/29/2012 6:28 PM
    Here's the link, sorry it didn't print in the first post. http://www.youtube.com/watch?v=8tYcJ4a3o1g
    Torrential
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    10/29/2012 6:37 PM
    Posted By CatAdjusterX on 29 Oct 2012 06:14 AM

    Regardless whether Sandy drops below hurricane threshold, she will stay Sandy until she drops below 34MPH or something like that.

    Nevertheless, as Steve pointed out NYC and the Atlantic Seaboard doesn't have the same insurance setups as these states whilst of course have had hurricanes in the past, not to an extent that insurers will drop coverage for wind perils and require a windpool. Interesting point though, great information. I like your avatar by the way.

    ------------------------------------------------------------------

    I would agree about the named storm deductibles not being as prevalent in the Northeast, but after Irene last year, who knows what the carriers and state's have been up to, since. I haven't read anything specific, but the public is often the last to find out.

    I'm always the last to find out about changes in my HO policy. It just comes in the mail by decree. ;)

     

     

     





    Torrential
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    11/05/2012 7:34 PM

    http://www.nydailynews.com/blogs/da...eductables">Cuomo Administration Puts A Stop To Hurricane Deductibles - October 31, 2012 - http://www.nydailynews.com/blogs/da...eductables.

    Given who the carriers are dealing with, I think that Cuomo will win.

    Jud G.
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    12/03/2012 2:48 PM
    I've got 33 files. Some have the higher "Windstorm Deductibles" and some still have only a Standard Deductible. Many of my files come from a carrier who waives the deductible when the loss exceeds $50,000. I've only seen one 'Hurricane' deductible. This information is purely anecdotal, as there are millions of claims out there.


    The safest, cleanest way to do this is to tack on a 'windstorm/hail' deductible and place a well worded endorsement that defines it. Yet, even that's kind of redundant. Here, "Windstorm" plus a well defined/worded endorsement sounds much simpler.

    Steve, you helped write policies and endorsements. What do you think about it? 

    If the NHC is rescinding the naming of Hurricane Sandy, will that mean that this first year to name Blizzards may also be the last?

    bcarpenteradjuster
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    12/05/2012 11:25 AM

    Personally Ive ran 80-some claims in Sandy and I have not come across a deductible more 1000 for any carrier I've been working for in this storm, if there was a way for the insured to get around these named storm deductibles or windstorm/hail deductibles I'm sure the people in Louisiana would be ecstatic! Citizens insurance was slapping some $8000 deductibles on claims for the storm this year. My thought on that is if the insured can not pay 8000 to get the repairs done,and technically the carrier has paid the claim per the contract that the insured signed, in the event another storm hits and it is discovered the previous repairs were not made,the carrier is out of paying for say,the roof, because they paid for it and the insured did not fix it. Is this about right? As an adjuster, as an insured,and as a human...these GIANT deductibles just do not sit right. 


    sbeau4014
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    12/13/2012 10:35 PM
    One of the primary reasons carriers have been moving towards the hurricane/name storm/wind and hail deductibles was to minimize their risk in areas that are prone to windstorms and hurricanes which are primarily coastal in nature. Numerous carriers have reduced their risk by pulling out the coastal market and the lion share of the one that stayed have gone to the larger type windstorms – hurricane deductibles. The policyholder gets a pretty fair premium reduction for these deductibles, but that's all forgotten when they are told they have to pay that amount of the damages. Most of the work I'm dealing with have wind deductibles (haven't seen a hurricane or named deductible in that area at all) that range from 1% to 5% with generally a $25,000 minimum and on most commercial policies the deductible applies per building and per BPP group. Have seen homeowners policies with deductibles as high as $130,000 and excluding my excess claims, some of the commercial policies have grosse deductibles on them well into the hundreds of thousands of dollars.
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