Bergen County and New Jersey Homeowners Saved From Hurricane Deductibles

By Christina Mlynski/housingwire.com

New Jersey homeowners saved from hurricane deductibles

Various homeowner insurance policies have a deductible based on a property’s insured value, which ranges from 1% to 5%.

For example, if there is a 5% deductible for a home that is insured for $300,000, the homeowner would pay $15,000 before receiving money from the insurance company.

In New Jersey, for example, the Department of Banking and Insurance informed state insurers that hurricane deductibles do not apply because under state law, two requirements need to be met: it must be classified as a hurricane by The National Weather Service when it hits the state and winds must sustain 74 mph inland.

The National Weather Service declared Hurricane Sandy as a “tropical storm” and as a result, homeowners in New Jersey, Maryland, New York and Connecticut are not subject to pay costly hurricane insurance deductibles.

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