Rebuilding After Sandy But With Costly New Rules. NYTimes, May 8. The discussion of subsidized insurance and issues with older homes is useful to understand some of the rebuilding delays occurring currently.
Here are some excerpts:
It’s been more than six months since Hurricane Sandy hit the East Coast, yet many people whose homes were ravaged by the storm still do not know how to put all the pieces back together.By now, most know how much insurance money they have to work with, though plenty of people are still struggling to get more. But a new federal law that happened to coincide with the arrival of the storm will cause flood insurance premiums to skyrocket and require stricter, and thus more expensive, rebuilding standards
So in the most devastated communities, families are being forced to make difficult financial calculations: can they afford the new flood insurance premiums, which, at worst, can reach as high as $30,000 a year? Do they have the money to rebuild their homes to the government’s new specifications? Does it even pay to stay?
Two readers called this article to my attention. And Ian McLean from New Zealand pointed out that his country has a similar problem with earthquake insurance in the aftermath of the Christchurch earthquakes.