Conn. Insurers Give Property Owners Break on Deductibles

NU Online News Service, Sept. 7, 1:30 p.m. EST

Nearly two dozen insurers in Connecticut have agreed to waive hurricane deductibles for property owners following the losses caused by Hurricane Irene last month.

According to a statement by Gov. Dannel P. Malloy and Insurance Commissioner Thomas B. Leonardi, nine companies were added to the list now comprised of 22 insurers that have waived the deductible.

A standard homeowners insurance policy does not cover flooding from storm surge. Additionally, many states—including those in Irene's path—allow hurricane deductibles in homeowners insurance policies. A standard homeowners insurance policy deductible is usually either $500 or $1,000.

Deductibles in Connecticut would have cost homeowners thousands of dollars, says Malloy, who adds his administration has been working closely with insurers since the storm.

“Certainly, what has been accomplished so far is gaining a much-needed financial break for many, but the long-term benefits of helping individuals put their lives back together are incalculable,” says Malloy.

Other companies—Chubb, Factory Mutual, Hanover, Kemper, Nationwide and Peerless—are not applying hurricane deductibles because triggers were not met.

Among the companies waiving deductibles are Allstate, ACE, Farmers, Fireman's Fund, Hartford, Liberty Mutual, MetLife, PURE, Safeco, Tower, Travelers and Universal N.A.

Insurers contacted for additional comment, including whether they planned to extended the waiver to additional states, were not immediately available.

Hurricane deductibles are included within loss estimates released by catastrophe modelers. Eqecat says U.S. insured losses from Irene will fall between $1.5 billion and $2.8 billion. AIR Worldwide gives an insured-loss range of $3-to-$6 billion.