Long Island To See Flood Insurance Rates Soar As Fed Changes Program

Long Island To See Flood Insurance Rates Soar As Fed Changes Program

LONG BEACH, N.Y. (CBSNewYork) – Long Island home owners worried about rising insurance rates stemming from changes proposed by the National Flood Insurance Program.

The change could mean doubling or even tripling of insurance rates for area residents, reports CBSN New York’s Carolyn Gusoff.

Home owners and Sen. Chuck Schumer spoke out Monday on their concerns and alarm over new rates being devised for the 5 million policy holders, many who live on Long Island.

Sen. Chuck Schumer Talks On Proposed Flood Insurance Changes

 

Home owners currently pay rates starting at $2,000 a year, some as much as $10,000.

With historic flooding over last several years, the FEMA program is saddled with debt and is revamping the way it determines individual policies rates based on the cost of rebuilding each particular house and proximity to the water.

Schumer says that will make flood insurance unaffordable on Long Island and essentially price people out of their homes.

MORE: Demanding A Fix To Constant Flooding, Long Island Residents Suing Town

He says the new formula is shrouded in mystery.

“This plan is 221 words – that’s it,” said Schumer. “What trouble, what terror lurks in those words? We have no idea.”

“Our biggest concern is we’re going to see a repeat of 2012, where flood insurance went from $2,700 to $8,000 even $10,000,” said Michelle Insigna of Adopt-A-Home Inc. “Therefore you’re going to price everybody out of their houses.”

Long Islanders say higher rates are just going to subsidize other parts of the country where building costs are so much lower, and that is not fair.

The argument has been made that higher insurance rates are needed to discourage more people form living so close to the water due to rising sea level and stronger storms due to climate change.

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April 01, 2019 at 11:52PM