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New federal flood maps bump up insurance costs.

Mayor Michael R. Bloomberg, Deputy Mayor for Operations Cas Holloway and the RAND Corporation released a study finding gapsin the National Flood Insurance Program that will increase flood insurance costs for New York City residents.

Theindependent study was commissioned by the City of New York to help evaluate current flood insurance coverage and premiums and prepare for expected rate increases due to major reforms of the flood insurance program and updates to the Federal Emergency Management Agency's flood maps.

The study found that 35 percent of property owners in the floodplain who are required to carry flood insurance today do not have it.

Under new FEMA flood maps that will be adopted shortly, thousands of new properties will now be considered in the floodplain, increasing owner's insurance premiums from an average of $430 to $5,000 to $10,000 per year.

RAND worked with the City to identify steps that could be taken to provide some relief from these insurance premium increases, including flood mitigation measures, high-deductible policies and other measures.

The City will press Congress and FEMA to take steps to protect homeowners, including delaying or modifying the implementation of some provisions of the new National Flood Insurance Program until measures to ensure that flood insurance stays affordable for low and middle income families are in place.

"For thousands of New Yorkers, the difference in the cost of insurance as a result of Federal policy changes is the difference between being able to stay in their neighborhoods and having to move," said Mayor Bloomberg.

"We will continue to lobby the Federal government to implement solutions to help New York City residents mitigate the significant rise in their flood insurance costs and help New Yorkers damaged by Hurricane Sandy to recover and rebuild."

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Comment:New federal flood maps bump up insurance costs.
Publication:Real Estate Weekly
Article Type:Brief article
Geographic Code:1USA
Date:Oct 30, 2013
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