In the aftermath of Hurricane Sandy, homeowners and renters in New York City and Long Island have been scrambling to figure out how to pay for flood insurance.
The issue has led to some confusing and expensive options for people who live in areas where property damage is limited.
Here’s what you need to know about flood insurance and how to get started.
How much insurance does it cost?
There’s a $1,000 deductible for flood-related damages in New Jersey and New York, and $500 for other flood-affected areas.
Some states limit the deductible to $100.
In other states, the deductible is $200.
You can purchase flood insurance in your state from an insurance company that you can purchase directly from the state.
The National Flood Insurance Program (NFIP) in New Hampshire is available to renters in that state for an annual fee of $400.
The National Flood Emergency Program (NFEAP) in the same state is available for renters in the New York metropolitan area.
For the New Jersey Flood Protection Program, a $10,000 flood insurance premium is required.
A separate program is available in New Mexico for homeowners who have lost their home.
In the aftermath, New York Mayor Michael Bloomberg and state legislators are considering increasing the annual deductible in New Yorkers homes to $1.5 million and to $2 million in New Yorker’s flood-prone areas, Bloomberg told CBS News.
In a letter to the state legislature, New Jersey Gov.
Chris Christie said he’s concerned that increasing the deductible could drive up costs.
“As an elected official, I want to be sure that my constituents are able to protect their property,” Christie said.
“That is the bottom line.
My constituents are in the middle of the ocean and it is their right to protect themselves.”
As for New York State’s flood insurance, it costs $1 million to $3 million per year per property.
New York state does not have a statewide flood insurance program.
If your home is damaged, the state offers a $25,000 homeowners insurance policy for damage to property of $500,000 or more.
New Yorkers also have a $5,000 “fire-and-forget” policy that covers any damage of $25 to $500.
In New Jersey, homeowners have to pay the deductible for damage of more than $100,000.
In New York and New Jersey state, you can get flood insurance through your county.
In Long Island, the insurance company is the county.
In addition to the $1-million deductible, there are additional exclusions.
Residents in coastal areas, for example, are required to pay $300 for a flood insurance policy.
You cannot buy flood insurance from an out-of-state insurer, and you must use the insurance that was issued by the insurance provider in your county of residence.