Top Insurance Lawyer, Frank N. Darras Warns: Homeowner Insurance Premiums Likely to Rise After Sandy
The devastation of hurricane Sandy means that by the New Year, customers will soon feel the impact in the form of rising insurance premiums and deductibles.
Ontario, CA (PRWEB) November 03, 2012
It's likely that stock options won't be the only thing affected by the damage Sandy caused earlier this week. Customers will soon feel the impact in the form of rising insurance premiums and deductibles. Early estimates say damage from Sandy is between $10 and $20 billion, but experts believe the damage will be closer to $25 or $30 billion.
“Right now the focus is on bringing people to safety and cleaning up the disaster Sandy left in its wake. Insurance companies will pay to some policyholders but come the New Year, customers should expect increases in both premiums and deductibles as insurance companies recover their losses,” says Darras.
While homeowners across the country can expect moderate increases, those who own property along the Eastern shore will be the most affected. This is impacted not only by the storm damage, but by recent laws enacted in Connecticut and other states to prevent insurance companies from making homeowners meet their deductibles before giving payouts from damage from Sandy and Irene last year.
“Consumers must remember that insurance companies also get hit hard in disasters. This new law protects consumers, but it strikes a significant blow to insurance company's bottom lines. I wouldn't be surprised if some insurers pulled out of some high-risk areas all together,” says Darras.
While the insurance industry has the capacity to meet all payouts due to their large reserves and the (re)insurance markets, they also must think about their bottom line. The past three years has caused significant setbacks to the industry. In 2010, the U.S. fell prey to more natural disasters than the country had sustained in a single yea,r in at least 60 years. A year later, in August 2011, Hurricane Irene caused $4 billion in damage on the East Coast alone and insurers in hardest hit states paid out over $200 million in claims for damage.
“If this devastating cycle of large-scale natural disasters continues, it could create a national problem for insurers in years to come. While the scope of Sandy's damage is not beyond the industry's capacity to cover the costs, what about the next hurricane, tornado, or blizzard,” says Darras.
DarrasLaw's attorneys, including founder Frank N. Darras, have received numerous honors and awards from peers, validating the claim that we are America's top disability firm. Lawdragon has singled out Frank N. Darras for five years in a row as one of the Top 500 Lawyers in America. Since its inception, Super Lawyers has honored him by naming him to its list for his work with disability insurance policyholders. The American Association of Justice lists him as one of the Top 100 Trial Lawyers in California. Best Lawyers in America has profiled DarrasLaw and the firm's accomplishments on behalf of the disadvantaged and disabled.
At DarrasLaw, our compassion goes hand-in-hand with our legal expertise. We take pride not only in the results we achieve, but the care our team provides along the way. We hire only the top disability attorneys and staff, including our in-house nurse, for their compassion as much as their expertise and knowledge. Hiring the cream of the crop has been critical to maintaining our position as America's top disability firm.
Our national reach plays a role too. People from all 50 states turn to us for help with individual disability insurance matters.
Nationwide, we review more than 2,500 claims a month. In any given year, we handle more cases than many firms handle in their lifetime. We have recovered more than $750 million in wrongfully denied insurance benefits.
Representing clients across America, DarrasLaw can help you in your state, anywhere in America.
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