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Insurance Not Available for All Gulf Hurricane Victims

Gulf of Mexico Hurricane Alex

Insurance policies put on hold

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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Posted by on Jun 30 2010. Filed under Business, Featured News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

1 Comment for “Insurance Not Available for All Gulf Hurricane Victims”

  1. BreakingNewsBlog.us

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    then, the hurricanes are coming in the Gulf and, everytime an hurricane will come, the (already bad) containment cap MUST be unplugged from the wellhead since the ship that collects the oil can’t remain there with an hurricane, so, the oil will flow from the well at 100,000 barrels per day!!!!
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    and (everytime) it will need for: 5 days to unplug the containment cap and evacuate the storm site, a couple of day for the storm, another couple of days to come back on site and one day to replug the containment cap = 1,000,000 more barrels of oil freely spilled in the ocean… or worst…
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    WHAT are they waiting to listen those who have the RIGHT IDEAS AND SOLUTIONS to STOP the oil spill QUICKLY to SAVE the sea and shores nature and wildlife BEFORE they’ll be submerged by over 250,000,000 more gallons of oil, in the next TWO months (if lucky) ???????????
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    http://bit.ly/c8y9GX
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