Hurricane Sandy continues to have an impact on homeowners insurance
Homeowners insurance in the U.S. has been in a tumultuous state since the impact of 2012’s Hurricane Sandy. More than six months after the storm struck the East Coast, the homeowners insurance sector continues to reel from the damage that had been caused by the catastrophe. In recent months, the states affected by the storm have garnered relatively little attention, but New York officials are beginning to voice their concerns regarding the recent actions of some insurance providers.
New York markets prove volatile for insurers
New York is one of the states that had fallen victim to a direct strike from Hurricane Sandy. The storm caused significant problems for homeowners, many of whom found that their properties were not protected against the floods that the storm had generated. In the wake of the storm, homeowners insurance companies received harsh criticism from both policyholders and state officials. Now, officials have renewed their criticism as homeowners insurance providers begin to flee the state.
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Allstate among insurers pulling away from some markets
Allstate is one of the latest insurance companies to retreat from the New York market. Other insurers, including Liberty Mutual and State Farm, have also begun significantly limiting their presence in the homeowners insurance market. Insurers are fleeing the market due to the risks that exist in coastal regions — risks that have been pronounced by the onslaught of Hurricane Sandy. New York officials claim that insurers fleeing the market are forcing homeowners to pay more for coverage, a fact that has introduced significant financial strain to those still recovering from the impact of Hurricane Sandy.
State officials aim to penalize insurers for their abandonment of some markets
New York Senator Charles Schumer has joined other officials in petitioning the Federal Emergency Management Agency to penalize homeowners insurance providers that are fleeing some parts of the New York market. Allstate, as well as the other insurers making moves in the state, note that they remain committed to New York. In the case of Allstate, the company is still writing policies in supposed problematic regions, such as Long Island, but has begun to cut back on the policies it offers in these areas.