NEW YORK (CNNMoney) -- Homeowners in New York, New Jersey and Connecticut will save thousands of dollars in insurance costs after several state governors declared that Sandy did not make landfall as a hurricane, exempting them from insurers' hurricane deductibles
Unlike regular deductibles that require homeowners to pay a set dollar amount -- typically $500 or $1,000 -- hurricane deductibles often require you to cough up 1% to 5% of your property's value. So a policyholder with a house worth $300,000 and a hurricane deductible of 5% would have to pay for the first $15,000 in damages before insurance payments kick in.
Hurricane deductibles only go into effect when storms have sustained winds of 74 miles per hour or more, or Category 1 hurricane strength. And state governors from New York, New Jersey and Connecticut are saying Sandy didn't make that cut.
"Homeowners should not have to pay hurricane deductibles for damage caused by the storm," said Governor Andrew Cuomo of New York. Governors Chris Christie of New Jersey and Dannel Malloy of Connecticut made similar statements, as did Maryland's insurance regulator.