[US] Insurers Pull Homeowners Policies Due to Storm Fears

Rates Soar in Coastal Areas as We Head Into Hurricane Season

March 23, 2006 — On Massachusetts' Cape Cod, Doug Azarian hasn't seen a hurricane in years. But he's felt the effects of the Gulf Coast and Florida storms. His private homeowners insurance was not renewed.

"We haven't had damage in 15 years," Azarian said. He believes he's "paying for what happened 1,500 miles away."

All along the Atlantic coastline, insurance rates have jumped, and some homeowners have lost their policies altogether. And there isn't a lot that many can do about it.

Homeowners in parts of Massachusetts have seen their insurance rates jump 75 percent. Insurance companies believe they're at risk. They've paid out billions for Katrina and Rita damage, and they are listening to the weather forecast.

"What's really scary for insurers is, No. 1, the forecasts for upcoming storm seasons are horrific," said Julie Rochman, senior vice president of public affairs at the American Insurance Association. "No. 2, we've got so much building along the coastlines — these are houses built on sand dunes on barrier islands."

With more hurricanes expected and the northern coastline more vulnerable, according to forecasters, some companies are leaving altogether.

(more)

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link: http://www.abcnews.go.com/WNT/HurricaneKatrina/story?id=1761034&page=1&W...

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