Housing destroyed, but no insurance: how floods bring New Yorkers to bankruptcy

Flood damage is not covered by standard homeowner or renter insurance policies. And almost no one has special flood insurance in New York - the state is not at risk of frequent flooding. However, this year the region was not lucky: after two tropical storms dozens of basement apartments were flooded, the foundations of many houses were destroyed, and cars and other objects were damaged by water. Thousands of families have to rebuild it all from their own pockets, insurance companies have already said they will not cover flood damage. Fox Business.

Most of those affected by heavy rainfall from storms Ida and Henry lived in areas outside the coastal floodplains. Therefore, they did not have flood insurance, many considered the costs of such a policy unjustified.

“When we called the insurance company, they told us that they do not provide any assistance in the event of anything caused by a hurricane,” said Amit Shivprasad, whose home was destroyed by floods.

For several weeks now, Shivprasad and his parents have been living in a relative's apartment after New York City real estate inspectors declared their home uninhabitable.

On the subject: Hurricane Ida Damage: What To Do If Your Insurance Doesn't Cover Damage

The flooding, compounded by overflowing storm and sewer drains, burst through the outer wall of their home. Two residents of the basement apartment in this building were killed.

Residents of Jamaica in Queens (the area where Shivprasad lives) have long complained about poor drainage systems that have made flooding and waterlogging a frequent problem.

Of the approximately 10 homes in his area, only 000 had flood insurance.

Federal aid

Flood damage is not covered by homeowners 'or renters' insurance policies. According to Loretta Warhers, a spokesman for the Insurance Information Institute, people without a flood policy have several options for getting help with damages. They can get federal aid, she said. They also have access to low-interest loans and grants for damages.

How victims can receive financial assistance from the Federal Emergency Management Agency (FEMA) is detailed. here.

The flooding was sudden

The John and Roseanne Kiernan area in Rossmoor, a sprawling residential complex for senior citizens in Monroe, New Jersey, is 32 kilometers from the coastline and far from major rivers.

This and other families have been told over the years that they do not need flood insurance because their area is not in the flood zone, although it was flooded in 2005.

The home was previously owned by John Kiernan's mother and had flood insurance that cost about $ 650 a year. She died eight years ago and eventually the insurance went out. Now, the Kiernans estimate that it will cost about $ 100 to rebuild their home and replace their car.

And this is the situation for many - this summer in New York, houses were flooded in areas that have never been flooded. Even insurance companies advised these people not to spend money on flood insurance policies.

"You won't get anything"

Most standard real estate insurance policies have “nothing to cover” in the event of a hurricane.

“The insurance company sent very good, understanding people. They listened to everyone for about an hour, and then they said: "You will not get anything." This is the situation, ”Kiernan laments.

Joan Russo and her husband live not far from the Kiernans. They lived in this house for 16 years, but now it is badly damaged by heavy rain during storm Henry. The couple was forced to move to their son's home in another city.

“When we took out the insurance, they said:“ You don't get into the flood zone, there is no need for that, ”Russo said. "You listen to a service provider who says you don't need such a service, so you don't buy it."

Additional problems of immigrants

Some of the residents of the flooded areas are working class immigrants and face additional challenges. Due to the language barrier, many are unable to properly communicate with insurance agents. Moreover, these people are not so familiar with the complexities of property insurance in America. They may not even have realized that they needed separate disaster insurance.

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Officials are still counting billions of dollars in damages from New York's summer floods. And residents are wondering where to find money to repair houses and replace damaged property.