GOV. MALLOY, INSURANCE COMMISSIONER PRAISE CARRIERS FOR WAIVING HURRICANE DEDUCTIBLES
(HARTFORD, CT) – Governor Dannel P. Malloy and Insurance Commissioner Thomas B. Leonardi today announced that the Administration has been working closely with the insurance industry in wake of Tropical Storm Irene to address the issue of higher-cost hurricane deductibles that may be applied for some damages on coastal properties. As a result, the majority of the companies that write homeowners policies in Connecticut, including the Travelers and The Hartford, will be waiving the higher cost deductible.
“We should all be mindful that as our state and citizens continue to recover in these difficult economic times, there are some business decisions that could be extremely burdensome if imposed at the wrong time. I believe this is that time,” Governor Malloy said. “I applaud those companies who are waiving the deductible and commend them for taking this tremendous step of corporate goodwill. Failure to do this would result in many homeowners paying tens of thousands of dollars out-of-pocket.”
Commissioner Leonardi said some carriers have outright waived the deductible even though their policy language permitted it; others did not invoke it because their policy triggers were not met.
“I am asking all other carriers to follow the lead of those in the industry, who I believe in this instance, have done the right thing and waived the hurricane deductible. There is no question that Connecticut was hit by a damaging storm, but it wasn’t a hurricane when it reached us,” Commissioner Leonardi said.
Commissioner Leonardi said talks are ongoing with other insurance carriers to resolve the issue. The Commissioner said the Attorney General and Department of Consumer Protection are also looking into the matter. Currently, 17 companies that have nearly 70 percent of the homeowners market throughout Connecticut are not invoking the hurricane deductible on coastal policies.
Going forward, Commissioner Leonardi said the underwriting guidelines that permitted these deductibles will be changed and tightened.
“They currently do not carry the force of a regulation or statute and I will be reviewing whether legislative changes may be necessary,” Commissioner Leonardi said.
Companies that have waived the hurricane deductible:
Companies not applying the hurricane deductibles because triggers were not met:
For Immediate Release: September 2, 2011