Hurricane Deductibles Not Applicable to Sandy-Related Connecticut Claims

The Connecticut insurance department issued a notice alerting the insurance industry that companies may not impose a hurricane deductible on Connecticut claims related to superstorm Sandy.

“Please be advised based on information received from the National Hurricane Center and the National Weather Service, a ‘Hurricane Warning’ was not issued for the State of Connecticut nor did Connecticut sustain hurricane force winds as a result of Storm Sandy,” according to the department’s notice.

“Therefore, pursuant to Public Act 12-162 Section 1. (b) and the Department’s Filing Review Guidelines Related to Underwriting Coastal Homeowners Insurance Policies re-issued on December 9, 2011 (the “Coastal Guidelines”) as it relates to the use of hurricane deductibles, companies may not impose a hurricane deductible on Connecticut claims.”

Based on National Weather Service data, the max gust wind recorded in the state was 86mph in Madison, Conn., and the max sustained winds recorder were 59mph in Bridgeport, Conn., according to regulators.