Named Storm Deductible Issue Survives Motion to Dismiss: District of New Jersey Federal Court Issues Decision in Hurricane Sandy Claim

Following Superstorm Sandy, many state insurance departments along the East Coast issued bulletins indicating that insurance companies should not impose hurricane deductibles on homeowners, mainly because the classification of Sandy shifted from a hurricane to a post-tropical storm as it traveled the East Coast.

And Then Along Comes Sandy: Superstorm Shifts the Landscape for Flood Insurance

By | Get Real! | December 30, 2013

OK – here’s a dilemma. You have a federal program that doles out millions to people that take on risky behavior, and in fact can be seen as rewarding that risky behavior at taxpayer’s expense. So Congress passes a law in 2012 with overwhelming bipartisan support, and requires that the government quit subsidizing people that build in flood prone areas, especially if they are receiving much more than they are paying into the system.