Hurricane Sandy Insurance Claim Denied or Rejected?

November 27, 2012 — Hurricane Sandy was the costliest storm to ever hit the Atlantic seaboard. Total losses from the storm are estimated to hit $50 billion, with$22 billion in insured losses. More than 200,000 insurance claims are expected to be filed in the coming weeks and months.

After previous hurricanes, thousands of homeowners suffered when insurance companies unfairly delayed, denied, or under-compensated legitimate claims. Many of these homeowners and business owners contacted lawyers, filed “bad faith” lawsuits against insurance companies, and received thousands of dollars in compensation.

It is likely that many insurance claims will be denied because the insurance company claims the damage is “flood damage,” which is not covered under standard homeowner’s insurance policies or business interruption policies.

Many claims will also be denied because homeowners will be told that their hurricane insurance does not apply to flood damage. Hurricane Sandy was downgraded to a “Post-Tropical Cyclone” just before making landfall, and insurance companies may use this loophole to escape their debt to homeowners.