New Jersey homeowners protected from hurricane deductibles by executive action
New Jersey Governor Chris Christie has signed Executive Order 107, which will prohibit insurance companies in the state from imposing hurricane deductibles to homes that were damaged by Hurricane Sandy. The now notorious “superstorm” wrought havoc through much of the northeastern U.S. in late October. The storm hit New Jersey particularly hard as it made landfall, causing catastrophic damage to homes and state property. In a move to help save homeowners from the costly implications of hurricane deductibles, Governor Christie has decided to take action.
Deductibles often mean extreme financial stress for homeowners
Insurance companies often impose hurricane deductibles on homes that are damaged by hurricanes. These deductibles are meant to help insurers recover from some of the financial loss they see from powerful natural disasters, such as Hurricane Sandy. At times, the practice of imposing hurricane deductibles has clashed with insurance regulators in states where hurricanes are considered common, such as Florida. In many cases, these deductibles can bring about extreme financial stress to those that have fallen victim to natural disasters.
Economic stability could help recovery
Governor Christie believes that economic stability is one of the most important aspects to recovery. Thus, the Governor has determined that homeowners affected by Hurricane Sandy should be protected from hurricane deductibles insurers may want to impose. Executive Order 107 ensures that these homeowners will not see such deductibles, thus securing an economic foundation for the recovery of New Jersey. With homeowners protected against high out-of-pocket costs, recovery efforts may be expedited as state residents will have one less thing to worry about, financially speaking.
Insurers able to issue benefits through pre-paid debit cards
Executive Order does not only protect homeowners from hurricane deductibles. The order also enables insurance companies to begin paying out claims through pre-paid debit cards, or similar methods. This is meant to ensure that victims of Hurricane Sandy are able to take advantage of their benefits more quickly. This expedited access to emergency funds could be a major boon for those that have lost their homes to the catastrophic hurricane.