Written By: Glenn Michaels, Op-Ed Writer
Many homes and businesses that were impacted by Hurricane Sandy also known as Super Storm Sandy was not in a federal flood area. In addition the new federal flood maps are out and have been challenged by various groups so there is a delay in using the new flood maps.
In addition many insurance companies that write homeowners insurance are increasing their premiums, increasing their severe hurricane damage deductibles to five percent (5%) or to ten percent (10%) of the face amount of the total insurance coverage. These insurance carriers would rather drop these customers altogether but the state insurance departments of New York State and New Jersey are preventing these companies from dropping these customers.
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If an insured receives his insurance renewal this is one renewal that should not be filed away without reviewing the renewal. I reside in an area that was impacted by Super Storm Sandy. Upon reviewing my insurance renewal I was shocked to see some amazing changes. The annual premium was being increased $200.00 annually. The severe hurricane damage deductible was being increased to $15,950.00 from $1,000.00 per occurrence. Had I not read this policy renewal and my area was again impacted by another hurricane and if I had hurricane damage I would be forced to eat the first $15,950.00 damage. Knowing that I was no longer in good hands with my current insurance carrier I knew it was time to seek out homeowner insurance with another insurance carrier. With the help of an insurance broker I was able to replace my homeowners insurance with another carrier. This new policy insured gave me more coverage, a $1,000.00 severe hurricane deductible and my annual premium was now $500.00 lower than before. It’s out there, you got to go and search for the insurance that meets your needs.
Hurricane season is now here. Hurricane season is from June 1 to November 30 and during this time period a hurricane can form and move up the coast to cause havoc and severe property damage and even death.
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Flood insurance, if purchased, takes thirty (30) days to be effective and now is the time to purchase a flood insurance policy. As of this writing we have already had two named storms, Andrea and Barry. Andrea brought four to five inches of rain to my area. Low lying areas and areas with poor drainage already flooded. Barry went out to sea and caused little or no damage. We have the rest of June and five (5) more months of hurricane season to get through.
Everyone should also have a hurricane plan to follow so when and if a hurricane comes to your area the plan can be implemented and followed so there is less damage and everyone has the ability to escape the hurricane if forced to evacuate or if they choose to evacuate.
About The Author
Glenn Michaels - As an op-ed writer, Glenn Michaels is a mortgage underwriting instructor for CampusUnderwriter (www.MortgageUnderwriter.org). As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years.
