While it's been more than two months since Superstorm Sandy pounded the East Coast, frustrations continue to rise as homeowners struggle to determine just which damages will, and won't, be covered by their insurance.
Some homeowners who assumed they were covered for much of the damage they incurred are surprised to discover that they don't have all of the protection that they thought they did. Others are dealing with delays, while many are distraught over damage estimates they claim are too low, including exclusions for spoiled food (Insurance experts say homeowners policies typically don't cover food spoilage due to power loss, though terms vary) and other basics, which has led to finger-pointing between insurers.
Many residents are faced with issues such as homes that are growing with mold. With the winter months upon us, pipes are freezing as well. In one particular town on the East Coast, in fact, local groups have raised more than $2.5 million to help residents waiting for insurance checks.
Superstorm Sandy illustrates to homeowners how important it is for them to understand their insurance policies before a storm strikes, and to be ready to act when disaster strikes. Ways in which to better prepare include:
By doing so, storm victims can maximize their payouts and reduce the hassle of filing a claim. These lessons apply to other homeowners as well as those hit by a major storm.
Flood insurance required in some instances
Federal flood insurance is designed to fill a void left by the private sector. Flood coverage is sold through specialized policies and dominated by the U.S. government's National Flood Insurance Program (NFIP). Government policies cover as much as $250,000 for a home's structure and $100,000 for personal possessions. Government officials have been working diligently to help Sandy's victims.
The Federal Emergency Management Administration (FEMA) has extended the flood-insurance claims period to one year from 60 days. What's more, regulators in affected states have ruled that hurricane deductibles (as much as 5% of a property's insured value) will not apply to Sandy-related wind damage.
Standard policies don't cover certain issues
The rules for homeowners insurance can be confusing. Standard policies cover property damage from fallen trees, wind and fire, but they don't cover water that overflows a river's banks or surges from the ocean.
Some homeowner's say they have been caught off-guard by insurance-contract exclusions, which is why everyone should carefully read their policy in order to understand what their coverage includes.
Some homeowners who assumed they were covered for much of the damage they incurred are surprised to discover that they don't have all of the protection that they thought they did. Others are dealing with delays, while many are distraught over damage estimates they claim are too low, including exclusions for spoiled food (Insurance experts say homeowners policies typically don't cover food spoilage due to power loss, though terms vary) and other basics, which has led to finger-pointing between insurers.
Many residents are faced with issues such as homes that are growing with mold. With the winter months upon us, pipes are freezing as well. In one particular town on the East Coast, in fact, local groups have raised more than $2.5 million to help residents waiting for insurance checks.
Superstorm Sandy illustrates to homeowners how important it is for them to understand their insurance policies before a storm strikes, and to be ready to act when disaster strikes. Ways in which to better prepare include:
Studying their coverage and talking with their insurance agents about the coverage
Compiling detailed documentation
Getting independent appraisals, and
Keeping in close touch with their mortgage company
By doing so, storm victims can maximize their payouts and reduce the hassle of filing a claim. These lessons apply to other homeowners as well as those hit by a major storm.
Flood insurance required in some instances
Federal flood insurance is designed to fill a void left by the private sector. Flood coverage is sold through specialized policies and dominated by the U.S. government's National Flood Insurance Program (NFIP). Government policies cover as much as $250,000 for a home's structure and $100,000 for personal possessions. Government officials have been working diligently to help Sandy's victims.
The Federal Emergency Management Administration (FEMA) has extended the flood-insurance claims period to one year from 60 days. What's more, regulators in affected states have ruled that hurricane deductibles (as much as 5% of a property's insured value) will not apply to Sandy-related wind damage.
Standard policies don't cover certain issues
The rules for homeowners insurance can be confusing. Standard policies cover property damage from fallen trees, wind and fire, but they don't cover water that overflows a river's banks or surges from the ocean.
Some homeowner's say they have been caught off-guard by insurance-contract exclusions, which is why everyone should carefully read their policy in order to understand what their coverage includes.
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