Hurricane Sandy One Year Later

You only have to search online for “Hurricane Sandy photos” to be reminded of the devastation caused. One interesting page on Mashable shows photos taken just after Hurricane Sandy alongside pictures of the exact locations today.

Uninsured Losses

Over a dozen states were impacted by Hurricane Sandy, which caused an estimated $18.75 billion in insured property losses, excluding flood insurance claims covered by the National Flood Insurance Program. When you consider uninsured losses and the ongoing financial impacts, the economic implications from Hurricane Sandy will continue to be felt for many years.

Mark Glassman lists some of the outstanding damage in a Business Week article.

FEMA Assistance

FEMA also has a page outlining how Hurricane Sandy has been managed and where we are one year later.  More than $1.4 billion in individual assistance has been provided to more than 182,000 survivors, and $3.2 billion in emergency work, debris removal, repair, and infrastructure replacement.

Flood Insurance Reform Act of 2012

While coastal New Jersey and New York continue to feel Sandy’s effects, significant hurricane damage is being felt nationwide in the form of recent changes to the National Flood Insurance Program (NFIP).  The Flood Insurance Reform Act of 2012 was passed to make the NFIP more financially self-sufficient. The changes will mean premium rate increases for some – but not all — policyholders over time; however, some increases will be significant.

Recently, political and legal moves have been made to attempt to delay and modify the Flood Insurance Reform Act as the actual financial impacts of its implementation are being realized.

Impact on Homeowners Who Have Flood Insurance

However, as these issues are reviewed, homeowners with flood insurance on their primary residence must be aware that their current premium rate structure may be grandfathered as long as their existing policy remains in force.  Homeowners must maintain their current flood policies and not let them lapse; otherwise, they must purchase a new policy subject to the new rules and rates.

As we wait to see how the flood insurance reform situation develops, we can all be grateful no significant storms have occurred on the East Coast during the 2013 hurricane season. In looking back at Hurricane Sandy (and Irene in 2011), the lesson is that significant devastation can occur in areas that traditionally are not impacted by such storms.  And, although you certainly can and should take steps to protect your property from storm damage, it’s equally important to purchase the maximum amount of coverage you can afford for situations when Mother Nature delivers a significant punch.