Superstorm Sandy, like many major natural disasters before it, has given rise to a number of unique and important commercial property insurance coverage issues. As the storm's two-year anniversary approaches, most of these issues are just starting to wind their way through the courts.
Named Storm Deductibles
Many commercial property insurance policies provide for higher “named storm” or “hurricane” deductibles than standard per occurrence deductibles. While Sandy did at one time possess hurricane characteristics, it lost those traits prior to making landfall, and the National Weather Service downgraded it to a post-tropical cyclone hours before it came on shore in Brigantine, N.J. This is significant for coverage purposes, particularly where policies define “named storm” to mean a hurricane, tropical cyclone or tropical depression, none of which accurately describe Superstorm Sandy.
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