MISTYM1223
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I am not sure if this has been posted yet but I checked and couldn't find anything. This article can be found at SoMdNews.com
Insurance ‘Cyclone Clauses’ might be avoidable in Calvert
Due to fact that no hurricane warning issued
by LAURA BUCK, Staff writer More News
Calvert County residents making Hurricane Irene-related insurance claims may be able to avoid their insurance companys’ “Cyclone Clauses” making them pay a higher deductible than they otherwise would.
A press release from Maryland Insurance Commissioner Therese M. Goldsmith issued Thursday stated that to lawfully impose a percentage deductible for hurricane damage, the insured’s home must be located in a part of Maryland that was subject to a hurricane warning.
The press release said that according to The National Weather Service a hurricane warning was never issued for Calvert County though they were issued in Caroline, Dorchester, Somerset, St. Mary’s, Talbot, Wicomico and Worcester counties.
“If an insured’s home is not located in a part of the state that was subject to such a hurricane warning then a percentage deductible may not be imposed,” the press release said.
Several Calvert County residents and their insurance companies explained the Cyclone Clauses stating that when home damage occurs during 24 hours of a natural disaster, a claim deductible becomes 5 percent of a person’s home value rather than the usual $500 to $1,000 deductible.
Insurance companies Allstate and Nationwide were said to have had this type of clause.
Insurance ‘Cyclone Clauses’ might be avoidable in Calvert
Due to fact that no hurricane warning issued
by LAURA BUCK, Staff writer More News
Calvert County residents making Hurricane Irene-related insurance claims may be able to avoid their insurance companys’ “Cyclone Clauses” making them pay a higher deductible than they otherwise would.
A press release from Maryland Insurance Commissioner Therese M. Goldsmith issued Thursday stated that to lawfully impose a percentage deductible for hurricane damage, the insured’s home must be located in a part of Maryland that was subject to a hurricane warning.
The press release said that according to The National Weather Service a hurricane warning was never issued for Calvert County though they were issued in Caroline, Dorchester, Somerset, St. Mary’s, Talbot, Wicomico and Worcester counties.
“If an insured’s home is not located in a part of the state that was subject to such a hurricane warning then a percentage deductible may not be imposed,” the press release said.
Several Calvert County residents and their insurance companies explained the Cyclone Clauses stating that when home damage occurs during 24 hours of a natural disaster, a claim deductible becomes 5 percent of a person’s home value rather than the usual $500 to $1,000 deductible.
Insurance companies Allstate and Nationwide were said to have had this type of clause.