Hurricane/Flooding Insurance in NYC?

PS tenant in place and policy states so

Buy now or be flooded out forever!

free pool pass? yay

I have flood insurance. It is a hundred bucks or so. You also have to wait a month before it kicks in.

The problem is what insurance companies consider "flood" damage versus "wind" or "hurricane" damage.

I can imagine a Katrina scenario where one coverage claims flood damage while there other denies it - so both coverages magically don't apply....

I guess we'll see.

I just spoke with my insurance agent. All the big firms have declared a moratorium on new issuance until after the hurricane passes.

Personally, I think it's a blown marketing opportunity. I'd want to be the one CEO who can say, "We're the only firm that didn't turn its back on customers when they needed us most."

As memito said, there's a lag before many policies take effect anyway.

So you often research statements from CEOs when buying a new policy?

Their reputation will be strong if they pay out on claims, not if they foolishly take on new clients right before a storm. That would be idiotic.

Hurricane Irene Insurance Claims

The typical home-owner’s policy can be confusing when determining the extent of coverage for damages resulting from hurricanes, such as Hurricane Irene. As most private insurance companies, such as State Farm, Allstate, Liberty Mutual, etc., offer coverage for wind damage, and resulting damages of such, flood damage is often a confusing element faced by property owners after a hurricane. Of course, as an Insurance Company will go through extensive measures to limit the amount offer ed during settlement, their adjusters typically rely on blaming damages on “non covered” perils, such as storm surges.

Wind-and-Rain vs a Full-Blown Flood
While Hurricane Irene moves north, leaving trails of damaged and destroyed homes in her path, insurance adjusters are gearing up to handle the out pour of property clams caused by Irene. Policyholders should understand that one of the primary goals of their insurance company adjusters will be to “determine” whether wind or water caused the damages. This causation determination can make the difference between receiving a settlement check of several hundred thousand dollars, or, being denied and having to suffer financial devastation. The obvious conflict of interest in allowing the insurance company’s adjuster to make this determination should make all homeowners very, very, concerned. Insurance Company adjusters are specially trained to protect the financial interests of their company, and coupled with their “one sided” training on determining the difference between flood and hurricane damage, policyholders may find themselves on the losing end of a battle of policy interpretation and damage estimation. Policyholders victim to Hurricane Irene should refer to their policy’s “water damage exclusion” for explanation of coverage available. The typical water damage exclusion contains language such as below:

The Water Damage Exclusion

We do not insure for loss caused directly or indirectly by [water damage] … regardless of any other cause or event contributing concurrently [and] whether or not the loss event results in widespread damage …
“Water damage” means:
a. Flood, surface water, waves, tidal water, overflow of a body of water, or spray from any of these, whether or not driven by wind … caused by or resulting from human or animal forces or any act of nature.

Policyholders must be prepared for disputes regarding the interpretation of these provisions after the wake of Hurricane Irene. Fortunately, the terms relating to causation are not specifically defined and are ambiguous, which means that interpretation should be in favor of the policyholder. A knowledgeable Public Insurance Adjuster or Attorney would prove very advantagous to the homeowner when attempting to make this argument.

While Hurricane Irene moves north, leaving trails of damaged and destroyed homes in her path, insurance adjusters are gearing up to handle the out pour of property clams caused by Irene. Policyholders should understand that one of the primary goals of their insurance company adjusters will be to “determine” whether wind or water caused the damages. This causation determination can make the difference between receiving a settlement check of several hundred thousand dollars, or, being denied and having to suffer financial devastation. The obvious conflict of interest in allowing the insurance company’s adjuster to make this determination should make all homeowners very, very, concerned. Insurance Company adjusters are specially trained to protect the financial interests of their company, and coupled with their “one sided” training on determining the difference between flood and hurricane damage, policyholders may find themselves on the losing end of a battle of policy interpretation and damage estimation. Hurricane Irene victims should consult a policyholder insurance professional, such as a Public Insurance Adjuster or Attorney. Additionally, complaints should be filed with a State Insurance Department, in order to keep record of such issues in case of later claim denial.

Wind Damage

Strong winds are essentially the primary attribute of hurricane associated property damage. Continuous barrage can uproot trees, knock over structures, such as houses, buildings, sheds, cars, and cause an unlimited assortment of projectiles of debris. During the recent media coverage of Hurricane Irene, there has been much reference to the category for which this hurricane is currently at. These categories rate the intensity and speeds of winds, on a scale from 1 to 5, category 1 hurricanes are the weakest, and 5′s the most intense. Even hurricanes at the lower end of this spectrum can result in extensive property damages, and to illustrate this fact, there has only been three category 5 hurricanes that have made landfall on the mainland US. (Hurricane Andrew 1992, Camille 1969, and Florida Keys 1935).
Storm Surge

Another major cause of property damages sustained from Hurricane Irene will be “storm surge”. As Irene makes landfall, the low pressure, strong winds and high waves causes a dramatic rising of sea level. This is the attribute for which Hurricane Irene has caused “flooding”, which is not only extremely destructive to property, but also very dangerous. As Irene’s strong winds blow towards the shore, coastal cities such as New York are at much risk. A water rising of 30 feet is not at all unheard of, which is easily enough to totally destruct a home’s personal property.

Rainfall Damage

In only a couple days, hurricanes can dump as much as 3 feet of rain, which is what often comes as a surprise to homeowners who do not live near the coast. Hurricanes are capable of producing extreme levels of rainfall. Commonly, rainfall amounts to at least 10 to 15 inches, with even more when the storm is slow moving and large. Usually, the heavy rain occurs slightly to the right of the hurricane’s track. How the hurricane interacts with other weather systems, it’s size and speed, will determine the amount of rainfall. A historical example of this was during Tropical Storm Claudette of 1979; $600 million in damages was caused by over 40 inches of rainfall.

After facing property damages by Hurricane Irene, policyholders should immediately start listing and documenting damages by photographs, inventory listings, damage estimates and video. Because of the common disputes associated with hurricane damages with regard to policy coverage, homeowners should consult an insurance professional who represents the interests of the policyholder, in order to assure that all financial interests are represented and all policy coverages available are claimed and finally received. To find out more about protecting your interests after damages sustained from Hurricane Irene, especially personal property damages, visit www.digitorysolutions.net, or contact Digitory at 914-302-1049.