The easy water access, slower pace and balmy breezes of coastal life can be a dream, but hurricanes, tropical storms and the ever-increasing costs of insuring your property against damage can quickly turn paradise into a nightmare.Weather experts at Colorado State University's Department of Atmospheric Science say the current period of greater hurricane activity could last another 10 to 20 years — and add that global warming could raise hurricane risks permanently.
Insurers pulling back
As a result of these dire forecasts, major insurance carriers are continuing to pull out of coastal regions, raising premiums or imposing higher deductibles throughout Atlantic and Gulf Coast states. In December, for example, Allstate announced it will no longer write new policies in coastal Maryland and has been refusing to renew some policies along the South Carolina oceanfront. And State Farm is no longer writing wind-damage coverage in Mississippi's six southernmost counties.
Areas that have historically avoided such damage could start to see the same cutbacks.
"Insurance companies are going to factor in the potential for storms in areas that haven't had any storms," says Ken Schrad, spokesman for Virginia's State Corporation Commission, which oversees that state's Bureau of Insurance.
