According to both the U.S. News and the World Report, New York is among the top 10 states in America that are the most vulnerable to flooding due to strong sea winds that cause violent storm surges. Worse still, predictions from the National Aeronautics and Space Administration (NASA) suggest that New York may be underwater by 2050 due to the continuously rising sea levels. While the federal government works on safety measures to improve drainage and minimize the damage of natural floods, you should also protect your home by purchasing the right flood insurance. Here is a look at some of the reasons why flood insurance is essential in New York.
While the whole of New York is susceptible to flooding, the coastal areas and those adjacent to any body of water face a higher risk due to the ever-changing sea climate, says the New York Department of Planning. This means that even though you may be living in a presumed safe zone, your home can still flood if it rains heavier or longer than usual. One flooding event in a lifetime is enough to destroy all your property and leave you homeless. That's why it's important to consider purchasing a flood insurance policy even if you live outside a designated flood zone.
Most homeowners' policies exclude weather-related water damage, meaning they do not cover natural floods. This means that you need to purchase separate flood insurance coverage to protect your property against weather-related flood damage. Flood insurance also covers sewer backup that may directly result from flooding. On the other hand, this policy does not cover damage to high-value items such as precious metals, outdoor property such as fences, destruction from earth movements, and damage by mold, even if they are directly caused by floods, per the Consumer Report National Research Center (CRNRC).
According to the National Centers for Environmental Information (NCEI), a single flooding event in the U.S. can cause an estimated insured loss of $4.6 billion. For instance, in 2018 alone, the size of an average flood insurance claim in the U.S. was $42,580, as per the Insurance Information Institute (III). Since floods can cause catastrophic damage to your home, you'll most likely incur high costs to repair the damage from floods if you don't have flood insurance. Flood insurance comes in handy to cover repairs and costs of replacement when floods damage your property. This way, you'll protect not only your personal property but also your finances.
Data from the New York State Department of Financial Services (DFS) shows that the annual cost of homeowners flood insurance coverage in New York is about $700. This cost can vary depending on factors such as location, insurance provider, and size of potential flooding risk. The good news is that you can also find affordable flood insurance rates by comparing prices from different carriers, upgrading your drainage system to mitigate flooding risks, relocating to a safer zone, and asking for discounts from the insurance company.
A catastrophe aid from FEMA costs roughly $5000 per family, and the typical flood insurance claim is roughly $30,000, in comparison. FEMA might deny funds to communities that were flooded in the past but did not purchase flood insurance.
Preferred Risk Policies provide coverage at a cheaper cost for homes in moderate-to-low flood-risk zones, as long as the property fulfills certain eligibility conditions based on its overall flood loss history.
For help securing homeowners insurance and flood insurance for your property, visit the team at Tompkins Insurance Agencies. Our experienced team knows what it takes to help homeowners safeguard their homes and belongings.
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