Thursday, February 18, 2010
Coastal homeowners can't get insurance
From the Daily News:
Queens residents who live near a body of salt water could face a jam when looking for homeowners insurance if their policy is dropped - and pay a higher premium when they do find coverage.
Since Hurricane Katrina, coastal cities like New York have been reevaluated by insurance companies and are considered high-risk for storm damage.
A handful of factors contribute to what companies consider the most potential hazards, but a lot of weight is put on a home's proximity to salt water.
In some cases, homeowners were unable to renew their policies because they live too close to a shoreline.
One Flushing native, who lost his 50-year-old Allstate policy last month, said shopping for a new policy has been difficult.
"You call them, but they give you a real song and dance," said Robert Drum, 74, who is currently working a deal with a midwestern company.
Many agents told him that he lived too close to the Long Island Sound to be considered for a new policy, Drum said.
"I never heard of this garbage," he said. "It's a crock."