Regional DOIs – Except Virginia – Reclassify Sandy as a Tropical Storm
MD, DE, PA, NJ, NY, CT, RI, MA, NH, VT & ME have all issued bulletins reminding carriers that Sandy was reclassified from a CATEGORY 1 hurricane to a tropical storm by The National Weather Service before it reached landfall. Therefore, in these states, allowed hurricane deductibles may not be applied. Rather, the policy’s wind-related deductible and terms will apply.
We have also received confirmation that the Virginia Bureau of Insurance, however, is not issuing such a bulletin. This means that each carrier will make its own determination as to how they qualify and handle Sandy in Virginia.
In view of all this, a number of policy language/claims questions may still arise and require carriers’ updated, revised, reconfirmed and clarified claims guidance instructions, advising their agencies accordingly. Additional information is available at the PIA Tropical Cyclone Sandy Resource Center.
The thorny issue of hurricane deductibles was explored in an article published by Business Insurance. It turns on when Sandy was reclassified from a hurricane to a tropical storm: