Flood insurance rate increases anger homeowners

Customers in New York are incensed as they prepare for much higher premiums for coverage.

Many homeowners in the New York region are now facing a number of different events that are all having a considerable impact on the rates that are being paid for flood insurance coverage, sending premiums skyward.

Though many had believed that it could all be blamed on the damage left behind by Hurricane Sandy, this is not the case.

The cost of Hurricane (Superstorm) Sandy is certainly playing a role in the amount that is going to be charged to continue with flood insurance coverage, however, there are a number of different contributors to the issue that are making the premiums as expensive as they are. For instance.

Flood Insurance rates The federal flood insurance program overhaul in 2012 is also making the policies more expensive.

Therefore, with the federal flood insurance program changes, the cost of the payments following Superstorm Sandy, and the adoption of new flooding zone maps in areas at a higher risk, the moderate increases that result from each of these factors has lead to quite a large spike in premiums for many homeowners.

Some residents, such as one from the Belle Harbor neighborhood, have come forward to say that costs have skyrocketed from $1,500 per year to $9,000 or even $15,000. This has made the coverage cost prohibitive for many of them and they are not sure how they could ever manage to afford it.

In response to this occurrence, grass roots organizations, government officials, and the residents themselves are working together to help to stop the higher flood insurance premiums from actually being implemented. For example, in Brick Township (in New Jersey), local officials have hired a mapping expert and have paid to have this individual certified in floodplain technology so that the new flooding zone maps issued by the Federal Emergency Management Agency (FEMA) can be challenged.

In New York City, Mayor Michael Bloomberg has submitted his own proposals to help to make flood insurance coverage more accessible and affordable to residents. Amendments and bills have been proposed by senators across many states prone to flooding, including everywhere from New York and New Jersey to Louisiana.