Many 1,000 of property owners and residents along the gulf coast, in Florida, Alabama, Mississippi, Texas and Louisiana have filed lawsuits and class action suits against BP for the recent oil spill in the Gulf Of Mexico. The suite claims diminished house value and their BP claim is center around how long the oil spill continues to spread and the lives it touches. We don’t know the year long impact this oil spill will have on property values and on tourism. Don’t forget that many residents along the Gulf of Mexico has income from vacation rentals and tourism in general.
The problem with the property value is the following.
Today many people own beach front property along the Gulf of Mexico, the value of these properties will devalue because of the perception of the oil floating out there waiting to hit land. This value drop can affect Mortgages rates and lines of credit with the bank. Now this snow ball will just keep rolling from one sector to the next and making a BP claim to protect the value of your house even if its not located directly on the beach but in the area of the beach are probably the best idea at this point.
The BP Class Action suit filed by the Gulf Coast Home owners alleges that BP downplayed the oil spill, its size and extent of the spill and that BP failed to apply adequate measures to stop the oil spill. The result of BP Oil Spill has made Property values drop all over the Gulf coast. The home owners will continue to see the lost of use and lost of rental income from this oil spill.
Another risk for the home owners along the gulf coast are the health problems associated with an oil spill, the news are already talking about a Gulf Spill Syndrome where people get headache and respiratory problems from the breathing of the contaminated air in the gulf coast region.
This lawsuit file by the Gulf of Mexico home owners has been proposed as a class action lawsuit against BP as many people are in the same situation and having a class action lawsuit will cut down the cost for each individual to recover their claim from BP.
I will follow up on this story as it develops.