Superstorm Sandy Threatens 284k Homes in its Path

October 30, 2012

A powerful tropical storm slamming into major cities along the East Coast stands to threaten 284,000 homes and lead to $87 billion in damages, according to estimates provided by research firm CoreLogic. 

CoreLogic estimates that the highest number of properties — 119,312 of that total — will be at risk in New York City, Northern New Jersey, Long Island, and parts of Pennsylvania. In Virginia Beach, Norfolk, and Newport News, nearly 60,000 properties will likely be at risk from the powerful “superstorm,” according to CoreLogic. 

"This is a large, slow-moving, persistent and dangerous storm. Its impacts are going to be far-reaching and no doubt very costly," says Dr. Howard Botts, vice president and director of database development for CoreLogic Spatial Solutions.

Hurricane Sandy was downgraded to a tropic storm by the time it hit the Northeast Monday. It has left millions along the East Coast without power and has killed at least 16 so far. High winds and a powerful storm surge are threatening many homes in its path. 

Once the storm subsides, many home owners may be left with having to face thousands of dollars in damages on their homes, despite having homeowner’s insurance.  

“Increasingly, insurers in hurricane-prone states — including almost all of those in states affected by Sandy — have been adding hurricane deductibles to their homeowner's insurance policies that go into effect when named storms have sustained winds of 74 miles per hour or more, as measured by the National Weather Service,” CNNMoney reports. “Unlike regular deductibles that require you to pay a set dollar amount, typically $500 or $1,000, hurricane deductibles often require home owners to cough up 1 percent to 5 percent of their property's value.”

The result will likely leave many home owners with having to pay several thousands of dollars in out-of-pocket expenses before their homeowner’s insurance even kicks in. 

Source: “CoreLogic: Hurricane Sandy Threatens Damage to 284,000 homes,” HousingWire (Oct. 29, 2012) and “Hurricane Deductible Could Cost Home Owners Thousands,” CNNMoney (Oct. 29, 2012)

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