New York Dodged a Bullet…Financially

Posted: November 2, 2012 Category: Blog, Environmental, Real Estate

Though it may be bitter-sweet, New Yorkers will fortunately not be subject to an even further ‘worst-case-scenario’ in terms of dealing with the aftermath of the notorious Frankenstorm, better known as Hurricane Sandy. According to a recent CNN article insurance claims for hurricane Sandy actually have an up-side…sort of.

Let’s face it, nobody likes paying insurance deductibles, but in this case the deductibles due by New York residents could be far worse, whether you can believe that or not. Typically, hurricane insurance deductibles are weighted as an amount variant between 1% and 5% of your entire property’s value. So, if you had a residence worth $300,000, and you had to pay a %5 deductible, there goes $15,000 of your hard-earned dollars just to get the insurance company involved. However, since Hurricane Sandy did not sustain 74mph winds long enough to be considered a Class 1 hurricane, the above framework doesn’t apply, and instead regular deductibles (generally between $500-$1,000) are all that will be required of New Yorkers.

The situation isn’t great, but (despite the obvious damages and destruction) the outcome, in this sense, could be even worse.

Our thoughts and hearts go out to the Hurricane Sandy victims.


image courtesy of david_shankbone

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