Sandy's Affect on Insurance Rates

Hurricane Sandy will have an tremendous impact on the U.S. insurance market place, especially for Homeowners insurance. The market conditions were not great before and now with damage estimates between 5 - 10 billion Sandy will certainly have a negative affect on the insurance market.

Some companies will fair better than others but small to mid-size companies who had a large presence in the Northeast will be hit very hard. Erie insurance is one company who has a large presence in the Northeast but over all is a small company. Time will tell the direct impact Sandy has on the insurance company's bottom line.

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Check Your Deductible

Several insurance companies are raising deductibles on Homeowners policies. When you receive your renewal information review it carefully and make sure you are aware of your deductible.

Some companies are increasing your overall deductible and some are adding a separate Wind/Hail, Named Storm or Hurricane Deductible. In the case of a Wind/Hail deductible most companies are applying a percentage deductible which can be substainal.

For example, if your home is insured for $500,000 and you have a 3% Wind/Hail deductible you have to pay $15,000 before your policy will pay anything.

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