Insurance Not Available for All Gulf Hurricane Victims
The residents of the Gulf are battening down the hatches and desperately preparing for the arrival of Hurricane Alex. After causing havoc at the northern end of the Gulf where the BP Deepwater Horizon site was being hit with up to twelve foot waves and stalling the clean up process, hurricane Alex is now moving closer to the borders of Texas and Mexico.
With the storm having passed the geographical outer parallels that are considered a safe buffer zone around the coast, things are staring to hot up. The leading insurance companies are quickly closing shop, particularly in the acceptance of any new insurance policies for home and contents insurance.
Even new applications that are still in an open status and have not quite been finalized may be affected by this pause in home indemnity policies.
What may come as shocking news to some is that when storms escalate and enter the Gulf to the point where they threaten the coastline and its inhabitants, most insurers consider it way to risky to be writing any new policies.
Insurance authorities call it a “cut-off point” and explain that is has been deemed as a necessary part of their normal business practice when accepting new policies. It helps to keep people from waiting until there is an imminent danger before applying for insurance cover, while at the same time forgoing many premium payments in advance.
As the Category 1 storm moves closer it brings with it winds that are now gauged at approximately 80 mph and should hit the coast by Wednesday or Thursday.
President Obama who has had a constant eye on the Gulf since the BP fiasco started, issued a federal emergency declaration on Tuesday for Texas, ahead of the expected arrival of the Cat 1 storm.
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