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Some Really Good News, Post-Hurricane

By
Real Estate Agent with Prudential Fox & Roach, Realtors

 Good news for central New Jersey home owners. Like us, those cleaning up from flooding and downed trees caused by last weekend's natural disaster probably have filing an insurance claim at the forefront of their minds. Late Monday, Banking and Insurance Commissioner Thomas B. Considine ruled that Hurricane Irene didn’t generate hurricane-force winds in New Jersey — an important distinction since it means insurance companies should not apply so-called hurricane deductibles to the property damage caused by the storm.

According to the Asbury Park (NJ) Press and houselogic.com, the ruling is likely to collectively save New Jersey home owners – and cost their insurance companies – millions of dollars.

When property is damaged by a hurricane, home owners usually have to pay a hurricane deductible, ranging from 2% to 5% of the property’s value. If the property was damaged by a weaker storm, they would simply pay their deductible, which often is much less.

New Jersey state law states that hurricane deductibles apply if the National Weather Service measures sustained winds from a named hurricane of at least 74 mph.

It appears that Irene’s winds in New Jersey fell just short of that required measurement. The National Weather Service on Sunday said peak winds during the storm gusted to 71 mph in Cape May and Florence, Burlington County. It's presumed that sustained winds were less than that.

Banking and Insurance spokesman Marshall McKnight said insurers are required to abide by the commissioner’s ruling.

Insurance industry officials said hurricane deductibles provide home owners in hurricane zones with a trade-off: In exchange for a lower premium, they agree to pay more if a hurricane hits. Allstate said all of its customers in New Jersey have hurricane deductibles. New Jersey Manufacturers Insurance Co. said only 4% of its customers have hurricane deductibles.

Policyholders who aren’t sure should look at the declarations page of their home owner's insurance policy, although this time it appears that they caught a break.

Both Allstate and New Jersey Manufacturers said they told their adjusters not to apply hurricane deductibles.

We're The Marchany Team, and we KNOW central New Jersey. We're right where you are, whether you're in South Brunswick or Monroe (Middlesex County). If you're looking for a terrific new home in Mercer County, we're prepared to search for your place in the sun in Princeton Junction, East Windsor, West Windsor, and Robbinsville. And if you're ready to put your Franklin Park or Hillsborough (Somerset County) home on the market, we're prepared to find the buyers who are looking for your home. Call The Marchany Team today at (732) 997-0019, and don't forget to “Like” us on Facebook! We are dedicated to helping you in every way possible.

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Comments (2)

Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great post.  I'm sure some of your fellow NJ residents will be happy to read your post!  Best of luck to you!

Aug 31, 2011 12:41 PM
Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

What an amazing photo.  I'm glad NJ is getting some help.  Too many people are already suffering from the economy, and now this.

Aug 31, 2011 12:56 PM