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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sandy's Cost Legacy Is Strain on Middle-Income Owners

"What would you rather have, a loan or a grant?" says Chimienti. "I lost my house and now I am stuck with a second mortgage on top of my original $520,000. So my total mortgage went up to $740,000. The new house will probably be worth I don't know maybe $620,000 or $650,000. So I am already belly up on my mortgage."

His monthly mortgage has climbed from $4,000 to $4,800. His flood insurance premium jumped to $2,200 a year from $1700, though once the house is compliant, his premium will drop to $400 a year.

Still, with two kids aged three and four and a third on the way, he and his wife are having to deal with the cost of a higher mortgage than they had planned for.

Storm's Real Legacy

A year after Sandy, victims affected by the storm are waking up to a harsh reality. You have to pay a heavy premium to live on a piece of paradise.

People who love the water and the beach just can't stay away from it. It is why any stigma related to buying homes by the water that develops soon after a big disaster such as Sandy typically fades over time, according to Miller.

Residents still largely see Superstorm Sandy as a once-in-a-100 years event. So they focus on rebuilding and move on. But if there is one takeaway from the recent disaster it is this. The odds of a massive disaster are low, but the damages are too heavy to ignore and the recovery process is a nightmare.

If you purchase flood insurance, your coverage is limited to $250,000. So if your home is worth more, you have to purchase additional insurance from private players, which is more expensive. If you have homeowners insurance, you will have to pay extra to get the right riders to ensure that you are adequately covered. Communities affected by the storms are redoing their building codes, making it possible that you might have to rebuild your home to be compliant.

2 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 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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