Tropical Storm Fay is not (yet?) a Hurricane. Fay has definitely caused property damage and loss of life, too, however. The Florida Insurance Commissioner reportedly said that, as a result, "the damage will be covered by the all-perils portion of a property owner's policy". Julie Patel, "Fay's Damage Will be Covered by Insurance Policies' All-Perils Section" (South Florida Sun-Sentinel.com, Friday, August 22, 2008). This may be unintentionally misleading.
The Florida Insurance Commissioner and the reporter(s) writing this story no doubt meant to say that Policyholders should look to the "All Risk" or "Other Perils" provisons of their Property Insurance Policies in connection with their Property Damage claims resulting from Fay. The Insurance Companies and if need be, the Florida Courts, will undoubtedly have something to say about whether Fay's damage will be covered in the case of particular claims.
In the meantime, it is encouraging to many Florida Policyholders to realize that, as the Insurance Commissioner and the news reports point out, since Fay's damage to date was not caused by a Hurricane, then the Hurricane Deductible cannot apply. Instead, a much lower deductible applicable to All Risks or Other Perils Coverages would seem to be the applicable deductible for claims presented on account of damage from Fay so far.
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