| November 13, 2012

Many Sandy Victims Find They Lack Sufficient Insurance Coverage

There are several scenarios that can lead a household down a dangerous path toward debt. Job loss, reckless spending, medical emergencies and student loans are only a few of the many factors that can make it difficult for individuals to build a solid financial foundation. In other cases, consumers may manage their money wisely, avoid unnecessary balances and take other steps to protect their finances only to end up in financial straits. A large number of Americans find that they currently face this situation as a result of Hurricane Sandy.

Homeowners along the eastern seaboard are currently cleaning up the wreckage from Sandy, which cost billions of dollars in damages, and left many without shelter, food or electricity. Many of those who lost their homes and belongings to the storm took comfort in the fact that they carried homeowners insurance and, in some cases, flood insurance. As claims begin to roll in, some are finding that their insurance policy will not cover the full scope of damage, leaving many with a bill that amounts to thousands of dollars.

For example, Roman and Mariana Bedinger experienced significant flooding to their Staten Island home, and water damage destroyed the floors, walls and ceilings. The couple has both homeowners and flood insurance. However, after contacting their insurer, they found it would only cover a few thousand dollars in damages, rather than the $75,000 to $100,000 bill they are facing for repairs, according to CNN Money. This is because their homeowners policy only covers wind damage, rather than flooding, and the separate flood coverage will not extend to damages to walls and the structure of the home. As a result, the family may be forced to pay for the extensive repairs out of pocket.

Preparing for a national catastrophe

The financial impact of a natural disaster can be ruinous for many families that don’t have a great deal of money put aside for these events. The first preventative step homeowners should take immediately is pulling out their property insurance policy and determining exactly which events are covered.

Separate policies are often required for certain types of disasters, such as flooding, earthquakes and sinkholes. Those who live in high-risk areas should explore purchasing a rider or supplemental policy to protect themselves.

In addition, homeowners should purchase enough coverage to rebuild, rather than replace, their home. Replacement insurance may only cover the fair market value of items and fail to take appreciation into account, which can leave consumers short of the funds they need to rebuild.

Following a catastrophe, it’s also important to seek out disaster relief assistance through government agencies or a housing counselor, which is often provided in federally-declared disaster zones.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice. Click here to learn more.

Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

Consolidated Credit is a Certified ISO 9001 company, as verified through Bureau Veritas Certification.

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

You can save!

With this amount of debt, you'd pay around $xx.xx on a DMP.

FREE Debt Consultation