08242017Headline:

Gadsden, Alabama

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Michael Roberts
Michael Roberts
Attorney • (256) 543-0400

Condo Owners and the BP Oil Spill

2 comments

The BP oil spill in the Gulf of Mexico is one of the worst ever, and it is wreaking havoc on everyone who makes their living off of the gulf. But there is one group that doesn’t get a lot of media coverage for their losses: Gulf coast condo owners.

There’s an old adage that says the three most important things about a piece of real estate are "location, location, location". And while these condo owners could once use their proximity to the beaches and magnificent views of the ocean to boost their property values, the oil that is quickly fanning out towards the shoreline has rendered these advantages moot. Many tourists are now questioning the Gulf as a summer beach destination, which is also hurting the owners of vacation lodging. And since standard commercial or home insurance policies usually cover only property damage, not claims for lost value, many condo owners may find themselves in a financially tight spot.

While it is too soon to gather an estimate on the long-term effects that this oil spill has had on local homeowners and small businesses, it is difficult to be optimistic. Florida governor Charlie Crist has declared a state of emergency in thirteen coastal counties, and "other states are in a similar state of concern". BP has come on the record claiming it will cover "all necessary and appropriate clean up costs", but they did not specify as to whether this would apply to private, as well as public, property.

This oil spill has immensely damaged the environment and hurt the livelihoods of thousands of people. I only hope that this whole situation gets resolved as quickly as possible.

2 Comments

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    Even though the beaches in Gulf Shores have not been effected, it has cost hundreds of thousands in rental income already.

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    Well Mike, I spoke too soon. Gulf Shores and Orange beach have now experienced oil, but it is being cleaned as I type this.