Hurricane worries
I read yesterday that Allstate will no longer insure homes in New Jersey, as well as several other coastal New England States, and parts of New York. It's about hurricane risk - the fear that we could face a Katrina-like disaster here. The last time New York was hit by a Big One was in 1938.
posted by sixty-five at 8:00 AM
6 Comments:
The reason is really quite simple. Allstate's policies either exclude hurricane damage or charge an extra premium to cover it. A reasonable limitation on a homeowner who lives in a hurricane zone. The problem is after Katrina a group of Allstate policy holders WITHOUT hurricane insurance sued and said that the flooding caused by the hurricane should be covered. The Judge agreed with the policy holders. I haven’t seen the text of the policies at issue, but based on all of the legal articles I have read about them, they were pretty clear that flooding caused by a hurricane should have fallen into the hurricane exception.
So now there is one less insurance provider doing business in these places and the premiums charged by the companies that don't pull out will certainly go up to cover the added risks.
Yes. Sigh. I was discussing this yesterday with a friend who asked me if I remembered the storm of '38, and , suddenly feeling very young, I had to admit to not having been born yet. She, on the other hand, a young 75, remembered it well. The worry is that next time (seems to be one of those "when, not if" things) it will be much worse because of population redistribution.
I was just watching a show about Katrina last night on the Weather Channel. They listed New York as the fourth most vulnerable city in the U.S. Have a nice day!
I can't even imagine how NYC could be "evacuated" - even with ample warning. Where would everyone go???
Earthquakes aren't sounding so bad now, are they? Come to LA! Everyone!
I wouldn't worry about it. Most of the Katrina damage was done by flooding, and you are on pretty high ground from what I remember. The reason NYC is at risk is because of how a storm surge could combine to create flooding just like New Orleans. I suspect Long Island wouldn't be sitting too pretty either surrounded by coastline.
Do you remember that time I went into the city for the night and there was a huge rainstorm the next morning and everything was flooded when the drainage systems couldn't keep up? Does not bode well for the masses, hehe. Have a nice night!
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