Florida Office of Insurance Regulation Issues Informational Memorandum on Deductibles Applicable to Tropical Storm/Hurricane Isaac Losses
Aug 30, 2012
The Florida Office of Insurance Regulation has issued an Informational Memorandum notifying residential property insurers that under Florida law, the hurricane deductible is not applicable to Tropical Storm/Hurricane Isaac damage claims that occurred prior to August 28, 2012, at 11:20 a.m. CDT, which is when the storm became classified as a hurricane.
Rather, insurers must apply the “all other perils deductible” or “other than hurricane deductible.”
The Informational Memorandum is reprinted below and attached.
Should you have any questions or comments, please contact Colodny Fass& Webb.
August 30, 2012
Florida Office of Insurance Regulation
Kevin M. McCarty, Commissioner
To Residential Property Insurers in the State of Florida
Deductible Applicable to Tropical Storm/Hurricane Isaac Claims
The purpose of this informational memorandum is to advise property insurers that Tropical Storm/Hurricane Isaac was declared a hurricane by the National Hurricane Center of the National Weather Service on Tuesday, August 28, 2012, at 11:20 A.M. CDT.
Before Tuesday, August 28, 2012, at 11:20 A.M. CDT, Tropical Storm/Hurricane Isaac was classified as a Tropical Storm. Section 627.4025(2)(a), Florida Statutes, specifically defines “hurricane coverage” as coverage for loss or damage caused by the peril of windstorm during a hurricane and furthermore (2)(b) provides ”Windstorm” for purposes of paragraph (a) means wind, wind gusts, hail, rain, tornadoes, or cyclones caused by or resulting from a hurricane which results in direct physical loss or damage to property.
Insurers are hereby notified that the hurricane deductible shall not apply to property losses associated with a Tropical Storm/Hurricane Isaac damage claim that occurred prior to Tuesday, August 28, 2012, at 11:20 A.M. CDT.
For these property losses, all insurers must apply the deductible that is unrelated to hurricane, generally referred to as the “all other perils deductible” or “other than hurricane deductible.” An insurer that fails to apply the appropriate deductible is subject to administrative action.
To view information regarding deductibles, the National Flood Insurance Program, and other important insurance related matters, please visit http://www.floir.com/.
If you have any questions regarding this memorandum, please contact David Altmaier, Financial Administrator, Property and Casualty Insurer Solvency, Florida Office of Insurance Regulation at firstname.lastname@example.org or 850-413-3849.
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