This article follows up on a series recently posted here and on Insurance Claims and Issues Weblog.
The turmoil wrought by Sandy did not stop after Sandy passed through. Sandy's turmoil may have only begun then. Sandy's turmoil continues now, affecting many areas of life which are now coming to the forefront.
In addition to the effects swirling around new Insurance Premiums and Deductibles including the National Flood Insurance Plan, and new Construction Codes including building and rebuilding plans previously addressed in this series, current newspaper reports reveal the approach of even more turmoil for Insurance and Housing Markets. See, e.g., "AFTER SANDY: FACING LIMITS ON PUBLIC POLICY, INSURANCE POLICIES" posted here on December 9, 2012 in a series begun here on December 6, 2012 (see in particular the Categories for "Catastrophe Claims," "Flood Insurance," "Hurricanes," and "Premiums".)
It is reported that:
- Housing prices have understandably fallen over a price cliff along the Coastal areas affected by Sandy.
- In addition, Mortgages are much harder to obtain, and when obtained, they are much more expensive for would-be home purchasers -- and for existing homeowners who want to repair and rebuild -- in those same Coastal areas. Banks reportedly have become "unwilling to provide mortgages to people seeking to buy in an area at risk for another catastrophe, or even to refinance properties so homeowners can pay for their own repairs".
- As a result, "a cut-price cash sale is sometimes the [existing homeowners'] only option." Sarah Maslin Nir, "Along Coast, Hurricane Left Housing Market in Turmoil" p. A18, col. 1 (New York Times Nat'l ed., Friday, December 28, 2012).
- An additional factor which thereby directly affects the current Housing market is "the pending release of new flood maps," Sarah Maslin Nir, New York Times, supra, a development which of course also directly affects the issuance and underwriting of Flood Insurance.
- Further, the turmoil in Sandy's wake includes new reports of increased unemployment from businesses forced to close or cut down their operations as a result of losses caused by Sandy. "Those most affected are the people who already have trouble finding jobs: older workers, single parents with child-care concerns and immigrants who speak little English." Julie Turkewitz, "Unemployment Deepens Loss From Hurricane as Businesses Remain Closed" p. A19, col. 1 (New York Times Nat'l ed., Friday, December 28, 2012).
As the New Year is about to begin, please join me in a prayer for our Country and for its people in 2013, a big part of which is our prayer for fair and just solutions to all of the issues addressed in this series, including in Housing and Employment and Business areas, and in the Insurance Issues which affect them all.
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