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Without Flood Insurance, Many Homeowners Left Out to Dry

Many Hurricane Sandy victims in New York and New Jersey did not have flood insurance and are finding that they will not receive enough compensation from their homeowners insurance policies or relief from the Federal Emergency Management Agency to repair damage from storm-driven floods...
November 28, 2012

Many Hurricane Sandy victims in New York and New Jersey did not have flood insurance and are finding that they will not receive enough compensation from their homeowners insurance policies or relief from the Federal Emergency Management Agency to repair damage from storm-driven floods. Areas that typically do not flood, where property owners were not required to purchase flood insurance and where many people choose not to buy it, were affected by the storm.

There were only 38,785 flood insurance policies in force in New York City at the end of August. In comparison. Florida’s Miami-Dade County, which has one-third New York's population, had five times as many policies in force. Even people with flood insurance are finding that the insurance does not cover everything. For example improvements to basements, such as drywall and carpeting, are not covered. A Wall Street Journal article notes that the gap between aid and insurance could transform neighborhoods if residents decide that it is too expensive to rebuild and purchase insurance in certain areas.

After Flooding, Left Out to Dry (Wall Street Journal 11/16/12) (subscription)

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