This Day On The Street
Continue to site
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
AAPL $127.98 0.30%
FB $83.74 0.78%
GOOG $537.50 0.40%
TSLA $205.27 0.00%
YHOO $45.11 1.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs