(Photo Credit: BVI Platinum News)
Minister with responsibility for Social Development, Hon. Carvin Malone has lamented the fact that more citizens are losing their homes, thanks to skyrocketed insurance premiums caused by the under-insurance phenomena following the 2017 hurricanes.
The Minister, while speaking in the House of Assembly on July 25, pleaded with his fellow legislators to see if legislative intervention can be made to assist affected persons.
He told the House that under-insurance was the buzz word after hurricanes Irma and Maria destroyed houses, and now it is a factor and reason why persons are losing their homes because they cannot afford the increase in cost that resulted.
In explaining what happened, Hon. Malone said, “Once you have a mortgage ..you are compelled, you must have your insurance; so it’s a captive type service that you have...You are paying on increased rates because it seems as if all of the monies paid out have to be recouped in a very short period. So some of the rates have either gone up by 60,70,80 percent. The value went up by 50, 60 percent; so you end up paying two times more than you can pay; so a lot of homes are on the market."
"Some of them, because you can’t afford the particular payments from the bank note, and some of them because of the insurance, so it is an issue that the Government would have to address because folks are coming in and they are having real issues,” the Minister explained.
Further, Hon. Malone noted that we are currently in another hurricane season, and stated that his Ministry is doing its best to assist residents. However, he noted that that many persons are frustrated with worry about their homes.
The Minister also hinted that the concerns about insurance is high on the list of current concerns.
"...These are real issues with consumers feeling aggrieved and somehow feeling there is very little recourse that could be, except for the fact that it is given at the FSC level, and the specific organization is working to look at this,” Hon. Malone said.