Long Islanders Could Expect 'Major Increases' In Flood Insurance Rates

BELLMORE, NY — Long Islanders know too well the push and pull of severe weather on the coastline. Many have also seen their flood insurance rates go up since Superstorm Sandy a decade ago.

Now, homeowners could see a hike with the new Federal Emergency Management Administration's new guidelines.

Those whose policies were up for renewal, or are purchasing a new property as of April 1, will adhere to FEMA's change in flood insurance pricing. Instead of using maps and charts, FEMA will use something called Risk Rating 2.0 to calculate.

"They did this to try and make it more equitable," Thomas Whalen, Allstate insurance broker in Bellmore, told Patch.

One of the new factors FEMA is focusing on is a home's distance to the flooding source. With many homes getting elevated in recent years, the height of the first floor is also being considered.

"A big one they hadn't used prior-- the replacement cost on the home," Whalen said.

Something also unique to the actuary tables, FEMA will delve into past insurance claims dating back 20 years on a house.

Whalen is concerned that the new criteria will cost most homeowners more.

As early as October, Whalen could see what the difference would be for new flood insurance policies going forward.

"In many cases, we're seeing major increases," he said. "In some cases, we're seeing some decreases. A very few are staying the same."

Typically, homeowners closest to the water would see the highest increases in their flood premiums. However, by law, rates can't go higher than 18 percent per year for existing policyholders, Whalen said.

"You're going to see a lot of people who are taking 18-percent increases for the next five years, or more," Whalen said.

One way to keep payments lower, new buyers can get grandfathered flood insurance from the existing homeowners.

Additionally, flood insurance is only required to purchase certain homes. But those with mortgages paid off don't need to carry it. That also means if no flood insurance is in place, a new homeowner would be responsible for the new rating.

Buyers still have to pay for flood insurance based on the zone location. Coverage limits will remain with a maximum of $250,000 per property and $100,000 for personal property or contents.