Insurers See Storm Clouds Over Brooklyn
Home insurers are increasingly dropping coverage or raising fees for Brooklynites, claiming the borough’s properties are in a high-risk hurricane zone—no matter how landlocked those properties happen to be. According to an article in New York Magazine, Allstate and other big firms have been nixing policies in neighborhoods like Park Slope and Ditmas Park, saying…
Home insurers are increasingly dropping coverage or raising fees for Brooklynites, claiming the borough’s properties are in a high-risk hurricane zone—no matter how landlocked those properties happen to be. According to an article in New York Magazine, Allstate and other big firms have been nixing policies in neighborhoods like Park Slope and Ditmas Park, saying they’re vulnerable to a Katrina-like catastrophe. “There’s no differentiation [in terms of] distance to water,” notes insurance broker Banach, who says he’s seeing two or three non-renewals every week. Sure, the city’s surrounded by water, but it seems pretty boneheaded to tax owners all over Brooklyn without regard to how close they are to the coast, or whether they’re in flood zones. As the flood maps show, not all areas are created equal when it comes to the threat of flooding. Anyone have trouble getting coverage lately?
The Storm Before the Storm [New York]
A bit late, but in case anyone is interested in where the flood zones are:
http://home2.nyc.gov/html/oem/downloads/pdf/hurricane_map_english_06.pdf
I agree 100% 10:20. But even estimates of 1 in 70 years are based on woefully inadequate records dating back only 150 years or so.
The reality is that we live in a tier 1 hurricane zone, which means a hurricane can hit us any time. For those global warming zealots out there the odds are even higher due to higher ocean temps, etc.
People are just starting to feel the pinch of reality that NY is a tier 1 hurricane zone, and like it or not it is a very real possibility we will get hit, and the damage will be many many billions of $.
The cost of insurance is just now catching up with reality – that’s just another premium we pay to live in the greatest city.
Predicting exactly when a hurricane is coming is simply not possible. We are not “overdue” this year any more than prior years. That major hurricanes are predicted to come only come every 70 or so years does help us assess the risk. IT MEANS EVERY YEAR THE ODD OF A HURRICANE ARE ABOUT 1 IN 70. It doesn’t mean that if we get a hurricane, we can relax for the next 70 years! Or that we are “overdue.” agree?
Carol — I think we have renters’ insurance with Allstate. But we have had it since maybe 2000, so we might be grandfathered in.
I have Fireman’s Fund and I am pleased – pricier than most others (except maybe Chubb). To get the pricing down, you really have to look at what’s in the “umbrella” – if you don’t need auto coverage – get it out!
When I moved to Carroll Gardens I called my old Met Life guy to inquire about renters insurance and he said “Sorry, no policies are being written in Brooklyn because you are long overdue for a hurricane.” I still haven’t found a policy. Anyone know if ANY company is writing renters policies?
I had Allstate as a renter and they would not sell us homeowners insurance when we bought our place well outside the flood zone: their explanation was that they weren’t insurance any of Kings County since the 100 year flood plain crossed through it. We have State Farm now and it suits us just fine.
My parents live in Suffolk County and had their rates doubled last year. Also, my boss lives in northern Queens and has been complaining about getting dropped a few months ago.
Allstate dropped me last year too. Is this going on in Nassau and Suffolk. They are technically located on the same “long island” as the counties of Queens and Kings