New York insurance chief holds insurers accountable for flood damage throughout the state

New York’s insurance chief has issued a warning concerning insurance companies and Hurricane Irene. According to Benjamin Lawsky, Superintendent of Financial Services, some insurers are trying to avoid paying for damages caused by flooding spurred by the storm. Lawksy’s warning is not targeted at consumers but at the companies that are offering flood insurance. He says that no company should consider denying payments because the damage to homes and businesses are so clearly the result of flooding. Some insurance companies are seeking to enforce what they call “hurricane damage” deductibles.…

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Legal battles expected in the wake of Hurricane Irene

Adding to the troubled following Hurricane Irene, lawyers along the East Coast are expecting a number of legal battles to break out, all centered on insurance. The most prominent litigations are expected to form around property damage and how it was caused. While most property insurance policies account for damage from wind, flood coverage is an entirely separate issue. State Farm, Allstate and Liberty Mutual are expected to bear the brunt of the legal battles as they are the primary insurers in the states battered by Irene. The extent of…

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