Some homeowners and business owners who have sustained serious property damages during Hurricane Sandy are being being surprised by what they are hearing from their insurance adjusters—that their coverage doesn’t cover their claims. Unfortunately, many are being denied insurance claim coverage for the damages they sustained during the storm, which is causing homeowners and business owners to sue their insurance companies.
Homeowners, all across the barrier islands and the Bayshore, are hearing from their insurance companies what is and isn’t covered under their policies. Many are being told that their residential insurance claims are being denied because their property damage was caused from flooding, and their policies did not cover flood damage. However, some residents who heard the sounds of the strong winds are arguing that the damage was a result of the gale-force winds and the rain carried on the winds.
These claim disputes between policyholders and insurance carriers center on determining the cause of the damage. While many feel the damage was caused by wind and wind-driven water, many insurance companies are blaming the damage on floodwater. This way the insurance carriers are able to deny water damage claims because standard homeowners and commercial policies do not cover flood damage.
While most policies do not cover flood damage, they generally cover damage caused by wind-driven rain. Because of this, homeowners and business owners are arguing that the wind ripped off their roof or siding and allowed rainwater to damage their homes or businesses.
As many insurance carriers are deciding not to cover Hurricane Sandy losses, many people are filing lawsuits and taking their insurance company to court—perhaps resulting in thousands of lawsuits over Sandy insurance claims.