State Clarifies When Hurricane Deductibles Can Be Applied

Commissioner Thomas B. Leonardi has announced that the department has updated its coastal underwriting guidelines to clarify when hurricane deductibles can be applied.

“These new guidelines were developed after lengthy deliberation and study and are intended to bring much-needed clarity to the question of when hurricane deductibles can be invoked. The new language requires that the National Weather Service must declare a hurricane and record sustained hurricane force winds — 74 miles per hour or more — anywhere in the state in order for a hurricane deductible to be applied,” Leonardi said.

The Commissioner said carriers have until March 1 to submit new policy language to the Department for review.

“There must be no gray area for our consumers, particularly at a time of great turmoil and stress in their lives. The Department requests that all companies honor this language and move expeditiously to update their policy language before the 2012 hurricane season,” the Commissioner said.

Read the guidelines here.

—State of Connecticut Insurance Department press release