Many property owners are surprised to learn that standard homeowners’ insurance won’t cover flood damage. Don’t wait for the storm to hit — get your flood insurance quote today.
Although 90% of natural disasters in the US involve flooding, standard homeowner’s insurance does not cover flood damage. Flood insurance is a safety net for property owners, offering protection against the more severe types of water damage, including heavy rain, melting snow, and severe coastal storms.
In an area like New York, where floods can (and do!) cause extensive damage that isn’t covered by insurance or federal aid. Case in point: the flash floods that swept across New York in July 2023 caused overwhelming destruction in parts of the Hudson Valley and beyond, including areas designated as low or moderate risk. Hundreds of homes were destroyed, leaving uninsured homeowners desperate for help.
Here are three key reasons we encourage New Yorkers to get flood insurance:
Flood insurance requirements in New York — and everywhere else in the country — are based on flood maps created by FEMA. Nearly one-third of all properties in New York face a high risk of severe flooding within the next 30 years. If your property is one of those located in a high-risk flood zone, your mortgage lender will require you to buy flood insurance as part of your loan agreement.
Even if FEMA doesn’t classify the area you live in as high-risk, it’s still a good idea to consider purchasing flood insurance. FEMA reports that over 20% of NFIP flood insurance claims come from properties outside a high-risk flood zone. At HCP, we supplement FEMA flood maps and state guidelines with our brokerage expertise to ensure you receive comprehensive coverage tailored to your property’s unique flood risk.
According to FEMA, even if you live in an area with low or moderate flood risk, you are 5-times more likely to experience flood than a fire in your home over the next 30 years. Recent studies indicate that FEMA flood maps substantially underestimate the true risk of flooding in many areas, including in New York. Most flood insurance policies are comparatively affordable, so leaving things up to chance simply isn’t worth it.
Most flood insurance policies are provided through the National Flood Insurance Program (NFIP), which provides basic flood insurance coverage for eligible properties. Because there are limitations to the standard NFIP policy, many New York property owners opt for supplemental flood insurance for added peace of mind.
In the event of flood damage, structural coverage pays to repair and rebuild your home’s physical structure — the walls, roof, etc. It’s important to note that some areas of your home, like the basement, are excluded from standard flood insurance policies.
Floods impact more than just your property itself. That’s why it’s important to safeguard what’s inside your home, too. You can purchase separate flood insurance for your furniture, appliances, electronics, and personal items. This ensures you won’t face devastating losses due to flood-related damage.
Because there are coverage limitations to NFIP policies, many New York property owners opt for supplemental flood insurance. For example, you may want supplemental insurance to cover additional living expenses while your home is being restored, such as hotel stays or temporary rentals.
Generally speaking, flood insurance covers any water damage from natural causes — high tides, heavy rain, melting snow, and more.
On that note, it’s important to know flood insurance doesn’t cover flood damage that originates in your home — if a pipe bursts, for example, or your sewer line backs up and floods your basement.
(Pro tip: to ensure you’re covered in those scenarios, connect with your HCP agent about adding water backup insurance to your homeowners’ policy.)
Various factors, including your property’s location, elevation, flood risk, and desired coverage limits, can impact your flood insurance premiums.
Flooding doesn’t always arrive with the great fanfare of a hurricane. Flooding damage can be caused by:
Flood insurance premiums in New York may differ depending on a number of factors. The site of your estate is an important factor in determining your rates. Insures located in riverine or flood-prone zones generally have higher insurance premiums. The elevation of your building also matters. Property at lower elevations might be at greater risk and, consequently, have greater incidence.
Your age and home construction can influence your flood insurance premiums. Homes, however, that are more recent and constructed in accordance with modern flood-resistant building codes may be eligible for reduced rates. The kind of cover that you select also affects the premium. More encompassing policies generally cost a lot, but they provide stronger protection.
Due to New York's varied landscape, flood risks will also differ significantly across the state. Coastal areas might show a different rate than inland areas. Your claims history can also affect your flood insurance rates. If you've made flood-related claims in the past, your premiums might be higher.
Choosing an appropriate flood insurance company in New York is of great concern. Begin by looking for companies with flood insurance coverage in the same area. Find insurers that are financially very well rated and have a solid reputation for customer service.
Compare quotes from different companies to get the best price. However, do not focus on the price alone. Pay attention to the policy limits and coverage. There are companies that, in turn, may provide extra perks or even less stringent terms.
Check if the insurer has experience with New York's specific flood risks and the costs assiciated. We are familiar with local conditions and can provide more tailored coverage. Ask about their claims process. A smooth, efficient claims procedure is vital when you need to file a claim.
Consider working with an independent insurance agent like HCP. We can help you navigate the options and find the best flood insurance or professional liability insurance in New Jersey for your needs.
Flood insurance needs must be addressed in very high-value properties in New York. Policies may not be adequate for coverage of luxury houses or high-end content. Obtain an excess flood insurance policy in addition to your primary insurance.
Consider insurers that specialize in high-value homes for luxury properties. They may offer more comprehensive coverage options for high-end homes. Regular property assessments can help ensure your coverage keeps pace with your home's value.
Please do not underestimate the value of recording your house and contents. Detailed inventories and appraisals may be extremely useful if you are filing a claim. Consider additional coverage for valuable items that may exceed standard policy limits.
Remember, flood insurance is separate from your homeowner's policy. Make sure you have adequate coverage for both. Full coverage is the most important in New York, where the weather can be very variable.
Concentrating on flood insurance, however, should not be under the umbrella of other important coverages. Professional liability insurance and business insurance in New Jersey are particularly important for protecting your business interests in bordering states.
Flood insurance is an important protection for New York residential property owners. Knowing the factors that influence your rates, how to select a good insurer, and how to protect the most valuable assets can help you to make sure you have your required coverage. Don't wait until it's too late and a natural disaster happens. Review your flood insurance needs today and secure your property against unexpected water damage with HCP.
In 6 simple steps, you can have all the assets you’ve worked hard to acquire fully protected.
All of these steps can usually be taken care of the same business day you reach out. If it’s outside business hours, we’re going to jump on this as soon as we can. You’ll get an email confirmation right after Step 1 is complete — always.
Make sure you’re prepared for whatever Mother Nature throws your way by securing flood insurance in New York.
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