As Hurricane Sandy-related insurance claims move into the next phase of the adjustment process, several key issues are beginning to emerge.
Insurance carriers are now examining losses through the lens of specific policy language, said Dave Passman, national director of property claims for Willis North America. One of the big issues we are seeing is the cause and origin of the loss as defined by the policy, he said.
Is the loss caused by a “Named Storm” or is it caused by a “Flood?”
Traditionally named storms have smaller deductibles and larger limits than flood. As a result this is usually more beneficial to a policy holder, he told me. While the policy will ultimately dictate, we expect many conversations over the course of the next few months and it looks like there is enough ambiguity out there, which many not make this a question with an easy answer, he said. Watch the full interview here.