Gulf Shores Insurance Woes

Insurance Homeowners There's a trickle down effect when you talk about higher insurance cost.

by Debbie Williams

Published: Mon, September 24, 2007 - 3:16 pm CST Last Updated: Mon, September 24, 2007 - 5:41 pm CST

There's a trickle down effect when you talk about higher insurance cost. Homeowners are paying top dollar for premiums and putting a strain on their finances. In some cases it is forcing them to make choices they never thought they'd have to make.
It's not just the beach houses and vacation homes that are being hit hard by the insurance crisis. "We had no damage and no claims." Far from the beach,
Judy Whatley has lived in her home for 15 years. "It's suppose to be Pleasure Island but it's not a pleasure when you're having to pay these large amounts out."
For Whatley, it doesn't seem fair, "I don't think I should have to pay out to others just because what they having to pay out. I think there should have been a more gradual increase not just a large amount at one time."
"I think it's just gotten way out of hand." For the first time in 20 years, Dee Burrow is wondering how much longer she can afford to live here and she's not alone. "A lot of people lower middle income or upper middle income people are not going to be stay on this island too much longer. I'm guesstimating three to five maybe six years. It's going to get to where we can't afford to live here any longer."
Higher premiums are certainly having an impact on an already over saturated real estate market. But that trend maybe about to change according to Sarah Kuzma Corporate Relations Director with Meyer Real Estate. "We have seen some negative impact on the insurance pricing up until the beginning of this year, then we saw it easing up and an easier ability to get content insurance for example."
Good news for those still struggling and losing hope, fast. "What is it going to take to get everything back to normal for people like us that our insurance note every month is higher than our house note?" says Burrow.
Kuzma says there's another trend along the beach front. Homes that were once only used as vacation homes are now being put up for rent to help owners offset the rising cost of insurance prices.

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