Half of a year has passed since the Superstorm struck and now rates are being impacted.
As homeowners insurance policyholders on the Jersey Shore start to receive their renewal notices on their policies – six months after the storm destroyed the region – many consumers are noticing that their premiums have skyrocketed when compared to what they were paying before the storm struck.
Residents of the Jersey Shore are still trying to rebuild from the damages left behind by the storm.
After facing considerable out of pocket costs from the devastation that Sandy left in its wake, residents are now bracing themselves for higher rates or less coverage on their homeowners insurance policies. This is a trend that is expected to continue following a massive shift in the coverage market of the area that began just after Hurricane Katrina struck in 2005 and that appears to have continued in this region in full force.
Some homeowners insurance customers are seeing premiums increases as high as 30 percent.
At the same time, homeowners insurance policyholders are pointing out that it wasn’t those policies that took the brunt of the losses from the storm. They are complaining that it was these insurers who were the first to point out that it is flood policies that would be responsible for covering the majority of the damage. Therefore, some feel that the insurers are taking advantage of the situation.
This situation could be difficult for residents. Many are already faced with a likelihood that they will be paying higher rates for their flood coverage as well as for their property taxes. Now they will need to dig even deeper to be able to pay for their standard coverage. Though various policies and even grants are helping many people to be able to rebuild.
Once their homes are standing again, they are now facing a new challenge, as they will need to decide whether or not they are able to afford actually living there. The costs associated with remaining in the same place, once it has been reconstructed, may prove to be too much for many homeowners insurance customers.