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Key takeaways
- Standard home insurance policies typically don’t cover damage from natural flooding
- Only 27 percent of homes at risk of flooding in New York state are protected with flood policies
- Flood insurance isn’t required unless a home is mortgaged and located in a federally designated flood zone
For most Americans, New York isn’t the first state that comes to mind when thinking of flood risk. Yet the state has more properties at risk of flooding than New Jersey and Connecticut combined, according to a Federal Reserve report.
Flooding is the No. 1 natural disaster in the state, according to government data. About 2.5 million New Yorkers live in properties that are at risk of flooding, the Federal Reserve Bank of New York said in a report last year. New Jersey has 1.2 million at-risk residents, and Connecticut has 345,267.
Do you need flood insurance in New York?
If your dishwasher breaks and floods the kitchen floor, your home insurance policy will probably cover it, but standard home insurance policies don’t include flooding that comes from natural sources. Homeowners typically aren’t required to have coverage from natural floods unless they have a mortgage and the home is located in a federally designated floodplain.
Many people think that they have coverage for flood damage through their standard home insurance policy, but in the vast majority of cases, they don’t.
— Anna Weber
Senior Policy Analyst, Natural Resources Defense Council
In New York, only 27 percent of homes that are at-risk for flooding have flood insurance policies. There are 631,572 homes in New York with flood risk, according to the Fed report. Only 167,875 of them are protected with a flood insurance policy, according to the Federal Emergency Management Agency, or FEMA.
How much is flood insurance in New York?
The average annual cost for a policy from the National Flood Insurance Program (NFIP) in New York is $1,124, according to FEMA data from January (up from $1,106 in October of 2024). That’s pricier than the U.S. average of $887.
The amount you pay could be higher or lower, depending on whether you live in a federally designated flood zone and other risk factors, such as a prior flood claim on the property. As of January, premiums no longer have to be paid in full each year. Now FEMA allows policyholders to pay monthly, if they choose.
Another factor that determines how much you pay is the size of the deductible—the amount you pay before insurance kicks in. For policies from the NFIP, deductibles can range from $1,000 to $10,000.
There’s also the option of getting private flood insurance, but it will be pricier than an NFIP policy. Currently, private flood insurance only accounts for about 5 percent of the market nationwide.
One reason to go with private insurance is if you need more coverage than the NFIP can provide. The maximum an NFIP policy can pay out is $250,000 for rebuilding or repairing a home and $100,000 for the contents of the home. In this day and age, that may not be enough coverage for most people.
How to purchase flood insurance in New York
The policies from the NFIP are backed by the federal government but are sold through private insurance companies. The company that provides your home insurance policy may also sell NFIP policies and may even provide the option of private flood insurance.
If that’s not the case, or if you want to shop around and get quotes from other insurers, the NFIP has an online tool for homeowners to look up agents in their area.
When you get a quote, the key questions to ask are:
- Is this the federal government’s flood insurance program (NFIP) or private insurance?
- Does it include coverage for the contents of my home?
- What is the size of the deductible?
When can you purchase flood insurance in New York?
The only time you can’t get coverage with a flood insurance policy is when a hurricane is bearing down on your region or another natural disaster is imminent. You can buy the insurance, but the NFIP has a 30-day waiting period before coverage kicks in, and private flood insurers have similar rules.
There are some exceptions. If you are buying a house or refinancing your mortgage, you may be able to get coverage without the waiting period. Also, if a natural disaster is looming, some insurers may decide to stop selling private policies—known as an insurance moratorium. The aim is to protect their bottom line at a time when they expect a jump in payouts for covered properties.
Recent news: What is the flood disclosure law in New York state?
In September 2023, Governor Hochul signed new legislation that requires sellers to disclose to potential buyers if a home is located in a flood risk zone or has flooded in the past. Previously, sellers could choose to waive the flood risk disclosure requirement in exchange for offering buyers a $500 credit during closing. This new law eliminates the credit provision and mandates greater transparency surrounding a home’s flood risk and history.
Frequently asked questions
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Like home insurance, most renters insurance policies do not cover flood damage. As a renter, you are not financially responsible for your home or apartment’s physical structure, but a flood could still damage your personal belongings. To avoid high out-of-pocket expenses, you might look into purchasing a flood policy to cover your furniture and other possessions.
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Flood insurance is not required in most cases. However, since home insurance doesn’t cover flood damage, getting flood insurance may be worth considering. A single inch of floodwater can do up to $25,000 in damage to your home — most of which would not be covered by a standard home insurance policy. Purchasing flood insurance can help protect the financial investment you’ve made in your home.
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Your mortgage lender may require you to carry home and flood insurance as a condition of your home loan, especially if it’s in a federally designated flood zone. However, flood insurance is not a legal requirement in New York (or any state).
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