Tuesday, December 4, 2012
Funding of Sandys Recovery
This week Governor Chris Christie revised the state’s estimated
damages from the storm and upped it to 36.8 billion from 29.4 billion. With a
walk down the coast it’s easy to see why. Houses were lifted off foundations
and thrown into their neighbors houses. Few were left unaffected. Front yards
were left littered with flat screen TV’s sofas, mangled waterlogged mattresses
and shattered glass. Rooms of houses are filled with sand and windows are blown
out of every floor of many houses. The thought of having to climb over a dune
of sand in my living room to get from my kitchen to the front of the house comes
merely impossible. People like Kevin Williams is living this reality .
With damage cost reaching a ticket price of 80 billion we ask
how will this all be funded? FEMA has approved more then 700 million in federal
aid for NY victems with 230 thousands New Yorkers who have requested assistance
since the storm hit a month ago.
Insurance companies are expected to pay out a total of 20 to
30 billion to those who have suffered. They are paying less then most would
expect because of the fact that many people have suffered flooding damage and
many people suffered from flood damage but don’t have flood policy prior to the
arrival of Hurricane Sandy.
Congress is expected to fund some of the damage in the coming
weeks. They could give out anywhere from 9 to 15 billion for infrastructure
damage and some home owner damage.
Donations in cases of severe natural disasters like these are
higher then some would expect. Donations have raised around 50 million dollars
from major donors and combinations of small donors online. People reach out to
those in need in times like these because we never know when something like
this could happen in our lives and it gives people a sense of good doing when
they know their money is going to a good cause and helping families get back on
their feet. We all know that natural disasters could affect any of us. Let this
be a reminder that we need to protect our family members by protecting and
preventing financial burdens of these as much as we can.
Insurance and FEMA
The aftermath of hurricane sandy is more money than any
individual could dream of having. The total price tag Gov Andrew Cuomo’s of New
York said has exceeded 42 billion. 33 to repair damaged housing and
infrastructure and 9 billion to help protect transit systems the power network
and sewage treatment facilities from future storms. This is just damage in the
state of new York. Rising costs in the state of New Jersey has reached 29
billion. This is what a strong storm can do to an area of high density. Financial
companies, insurance companies, families and the US budget will all suffer
because of the effects of sandy.
The effects of Sandy meant burden to Millions of Americans.
Hundreds of thousands of flood victims face high increase in their home
insurance costs or risk losing it all. Thousands in the New York area are told
by their insurance companies that they’re not covered for damages resulting
from Hurricane Sandy. Adding that because damage to their property was done by
flooding and not by “hurricane or tropical storm”. As many of a quarter million
homeowners in flood prone areas of the city of New York and Long Island may be
in the same situation.
Even though some insurance companies are denying claims since
Sandy hit shores the Obama administration has stepped in fast and been making
sure those who need emergency housing money get it from FEMA. The purpose of
FEMA’s emergency housing money is to allow people whose homes are uninhabitable
to temporarily rent new living quarters
while waiting for insurance companies to give money to make repairs. Since
insurance companies are failing to pay damage claims, homeowners say they have
to use some of the FEMA money to pay for repairs. This is very similar to what happened in the
Gulf with Hurricane Katrina. In the end people got more funding from government
agencies that didn’t have insurance then those who did because insurance
companies made excuses to not have to pay for damages. Slogans like “All in
good hands” is one by All State insurance, might make you question them when
families with their coverage suffer great financial loss even after paying the
premium to these insurance companies monthly.
Subscribe to:
Posts (Atom)