Archive for September, 2011

Tips from NJ Dept of Banking and Insurance May Help Those Filing Insurance Claims

Thursday, September 1st, 2011

An article in today’s (9/1) Trenton Times by Jarrett Renshaw, Statehouse Bureau,¬†talks about information from the NJ Dept. of Banking and Insurance (DOBI) Commissioner, Tom Considine regarding the recent storm and insurance claims.

In a memo on Monday (8/29) the Commissioner stated that “Irene did not generate sustained hurrican-force winds, defined as 74 mph, but the time it got to NJ and told insurers they could not apply the hurricane deductible when calculating how much homeowners should pay for damages.”

So, what does this mean? It means, that homeowners across NJ could save a lot of money. Apparently, hurricane deductibles are much higher than the standard deductible on homeowner insurance policies.¬†According to the article, “The hurricane deductible is often a percentage of the property’s value, ranging from 1 to 4 %… for example, a policy holder whoe home is insured for $200,000 with a 2 % hurricane deductible would have to pay the first $4,000 to repair hurricane damage. But in this case, the homeowner is only responsible for the first $500 to $1,000.”

NJ State Law says a hurricane deductible applies when the National Weather Service measures sustained hurricane winds above 74 mph, Irene’s peak winds were 71 mph, a small difference in mph but a big difference in out of pocket dollars for NJ homeowners who were affected by the storm.

It is good to know when contacting your insurance company, that they have been notified by DOBI that Irene was not classified as a hurricane and therefore you will pay your regular deductible on your homeowners insurance policy and not the higher hurricane deductible.

The link below will take you to the NJ Department of Banking and Insurance Website where you can see more storm related updates or contact them for questions.

http://www.state.nj.us/dobi/division_consumers/insurance/hurricane.htm#after