Homeowners insurance expected to fare well in wake of Nemo
The northeastern U.S. has been suffering from a spate of natural disaster over the past few months. In October of last year, the East Coast was struck by Hurricane Sandy, which caused significant damage to homes and properties in New York and New Jersey. This month, a powerful blizzard swept across the northeast. Winter Storm Nemo, as it is called, buried much of the region in heavy snowfall, causing disruption of businesses in many states and causing further problems for the homeowners insurance sector in the northeast.
Blizzard sets records for snowfall, not for claims
Record setting natural disasters have been more common over the past two years. The homeowners insurance sector has been dealing with the growing frequency of such natural disasters relatively well, but there have been issues that have delayed claims, which has caused a great deal of stress for consumers. This month’s blizzard set records for the amount of snowfall it produced, but homeowners insurance companies are suggesting that its financial impact will be modest.
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Insurers see fewer claims than expected
Bunker Hill Insurance, a homeowners insurance provider based in Boston, Massachusetts, claims that it has received only 42 damage claims that are linked to Nemo. This pales in comparison to the 250 claims that the company had received during the Halloween snowstorms of 2011. Several other homeowners insurance companies in the northeast have reported similar levels of claims, with larger companies accounting for the majority of these claims because of their larger consumer base. Overall, the financial impact of the winter storm is not expected to set any records or have a tremendous impact on the cost of homeowners insurance coverage in the region.
Preventative measures help mitigate impact of storm
Insurers suggest that numerous storm warnings, business closures, and driving bans, as well as other proactive measures, helped mitigate any of the damage that the blizzard could have caused. This has lead to a relatively mild financial impact from the natural disaster, significantly less than that seen with Hurricane Sandy. Insurers do not expect any problems or delays with paying the claims generated by the snowstorm.