Some victims of the superstorm are left with more coverage headaches after being hit with heavy snow.
Residents of the Northeast braced themselves for another massive storm at the end of last week as the blizzard being called “Nemo” thrashed its way through the states, dumping massive amounts of snow everywhere from New York City to Maine, only worsening the struggle of homeowners insurance customers who have not yet fully recovered from the damage left behind by Sandy.
Now, the claims are coming in again as the region digs out in preparation for even more snow.
Yet another spike in homeowners insurance claims is occurring in the area where flooding, broken pipes, and damaged roofs have resulted. The industry was ready for it, as a spokesperson for the Insurance Information Institute (III), Jeanne Salvatore, released a statement just ahead of its arrival, saying “This is a big storm and it’s going to affect a lot of people.”
This is only the latest catastrophic weather event homeowners insurance customers have seen in the last few months.
In fact, over the last handful of years, storms of this nature have contributed to a steady increase in homeowners insurance rates. According to the III, they averaged $988 in 2012, which was an increase over 2011’s rates by 4.5 percent. When compared to 2007, they have increased by 20 percent.
As winter storms are worked into the calculation of premiums for property insurance policies, many experts believe that any major damage from winter storms this year will only lead the rates to increase further.
Unfortunately, rising premiums aren’t the only struggle being faced by residents of the Northeast. This storm has arrived at a time that is particularly challenging, as many are still in the midst of rebuilding following the devastation that was left behind from Hurricane Sandy. The need for rebuilding has been exceptionally high. Just as the final payments of the homeowners insurance claims from that superstorm are finally being issued in order to allow residents to repair their properties, this blizzard has forced many to have to wait even longer or, even worse, to face fresh damage.