Following the devastation left behind by sandy, residents of the area now face another expensive choice.
Thousands of homeowners insurance customers are now facing expensive choices beyond having to manage and pay for the repairs from the catastrophe that Superstorm Sandy left in its wake along coastal areas of the eastern United States.
Many property owners are finding that they can’t afford any of the choices now in front of them.
This homeowners insurance news isn’t entirely new to these residents, except for the fact that it is now coming to a point that it must be dealt with. Not too long after the storm smashed its way past, federal authorities started to issue a warning to thousands of people who were battling to recover from the damage to their homes. The warning stated that these residents must either raise their homes above the level of the flood plain or they must face staggering new premiums.
For many homeowners insurance customers, it feels as though the choice is impossible as both are too expensive.
Thousands of coastal New Jersey and New York residents are discovering that they will neither be able to afford to raise their homes nor pay for the skyrocketing homeowners insurance premiums that will result if they don’t. Even a small cottage would cost $60,000 to place it on stilts above the flood plain. For a large, multi-storey home, it could cost $250,000 to raise it to the appropriate level.
However, as expensive as elevating the homes may be, the homeowners insurance costs for failing to do so are proving to be equally as daunting. According to a report from the Associated Press, one resident of Toms River, New Jersey, said that he would need to pay $30,000 for his property coverage if he does not elevate his home.
Many homeowners insurance customers are finding themselves forced to wait and see whether or not the rebuilding regulations for coastal homes will make it too expensive for them to be able to afford to stay. What they will do after that point, if they are forced to leave, will be another story, altogether.