This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Hurricane Sandy Sets the Stage for Insurance Battles

Stocks in this article: BRK-BALLTRV





Thomas J. Crowley, chairman of the Independent Insurance Agents and Brokers Association expects that there could be "massive appeals" to governors of the affected states to intervene. Perhaps there could be class-action lawsuits that gained favor in Mississippi after Katrina.

But Crowley thinks homeowners will lose the battle. "Bottomline, you are in a low-lying area, and are near the water, you got to get flood insurance," he said.

Experts lament the lack of flood insurance which they argue is very affordable. Flood insurance with the NFIP costs less than $600 a year and gets you coverage of $250,000 for the house. In low-risk areas, the cost could be as low as $129 according to the NFIP website.

Not too high a price to pay, considering that there is a 26% chance of flooding damage in a 30-year mortgage period in high-risk areas, according to the website. Moreover, a 6 inch flood of water can cause damage equivalent of more than $20,000 in a house of $1,000 square feet.

As the program's website points out, disaster relief isn't as easy as it seems. Most relief comes in the form of a loan repayable with interest.

Darras suggests those whose homes have not been completely wiped out by the flood to carefully word their claims.

"I would not use the loaded word "flood"- I would say water damage," he advises. "Trees around my property fell and covered my drains. Or debris from the wind damage broke my pipes. I sure would make that argument rather than say water creeped in, crawled in or flooded my house.

A lot of people make the mistake, saying 'all of a sudden I was in 6 inches of water'. That water came in because of something. Words make all the difference."

-- Written by Shanthi Bharatwaj in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,195.42 +221.11 1.30%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,566.1380 +16.9120 0.37%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs