Hurricane Means More Than Just Property Damage

As homeowners along the Eastern seaboard assess the damage done by Hurricane Irene, we may be looking at more than just property damage incurred.

The hurricane is likely to create a setback for an already uncertain real estate market in communities from North Carolina to Vermont, where residents have already seen their homes severely damaged or even destroyed.

Experts say the storm could delay pending homes sales and, in the longer-term, potentially depress home values. For homeowners teetering on the brink of foreclosure, the devastation caused by Irene could be a deciding factor in losing their homes. Insurers say total damages from the storm could be between $7 and $10 billion, according to published reports.

Some insured homeowners may not have policies that cover the full cost of the damage. That could pose challenges in paying for repair or rebuilding costs.
Banks may also face a tough time in processing home foreclosures. Bank-owned property that is badly damaged and unoccupied could delay the process.

Home sales that are about to close could see delays that last days, weeks or even months depending on the extent of storm damage.

The communities devastated by Irene could see their home sales dramatically impacted in the coming months. Homeowners may be asked to sign affidavits attesting that their home values are the same as when they were previously appraised.

It’s never too soon to assess your homeowner’s insurance policy to make sure you’re adequately covered the next time Mother Nature comes calling. We all know it’s not a matter of if, it’s a matter of when. So take the time now to make sure your insurance covers you for the things that matter.