This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Case Closed: Many Sandy Claims Not Eligible For Insurance Payment

Many East Coast residents who thought their home insurance would come to the rescue after Superstorm Sandy haven't gotten a dime out of their policies for repairs.

Almost one in five Sandy insurance claims in New York has been closed without payment, according to the latest count by the New York State Department of Financial Services.

Of 397,160 Sandy-related homeowners, auto and business insurance claims filed in New York, 375,774 have been closed as of April 12. Of those, 71,948 -- 19 percent -- have been closed without payment.

The data are from report cards issued by the state on how insurance companies have responded to Sandy.

The storm was one of the costliest disasters in U.S. history, causing $50 billion in overall losses and $25 billion in insured losses, global risk management firm Munich Re estimated. Sandy made landfall in New Jersey in October 2012 as a post-tropical cyclone and brought heavy rain, wind, storm surge and snow, eventually affecting some 60 million people in 24 states. Storm surge along the coast from New Jersey to Massachusetts caused the worst losses.

Claim denied

The insurance claim denials in New York were largely the result of two things, according to a Department of Financial Services spokesperson:

  • The loss was less than the policy's deductible.
  • Claims were filed when there was no insurance coverage.

Sandy was mainly a flooding event, he said, and home insurance excludes flooding. In fact, some homeowners needed denials from their home insurance companies to apply for assistance from the Federal Emergency Management Agency.

To get coverage for flood damage, homeowners must have flood insurance. Policies are provided through the National Flood Insurance Program and sold by private insurers. Here's more on who needs flood insurance.

Although floods are the No. 1 natural disaster in the United States, most homeowners don't have flood insurance, even in areas where it would seem like a no-brainer to buy it.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs