Insurers are starting to deploy adjusters to handle claims from Hurricane Sandy. Articles estimate that the insurance industry will lose anywhere from $7 billion to $15 billion as a result of the storm with total economic damage estimated at between $30 billion and $50 billion.
The reason for the large gap between predicted economic losses and insured losses is that the insurance companies will most likely claim that a substantial portion of the damage was caused by flood and is either uninsured or underinsured. Insurers will be denying claims where flood is not covered by their policies and segregating damage between wind and flood.
Insureds should review their policy carefully and make sure that their insurance company is properly covering losses incurred due to the hurricane. If you or someone you know believes that your insurance company is providing improper coverage for damage caused by hurricane Sandy, please contact us to discuss your legal rights.