The risk of flooding is increasing in Glen Cove, but at rates slower than the national average.
Currently, 1,050 homes are deemed at risk, and within 30 years, roughly 1,118 will be at risk. Only 2 percent of homes are required to have flood insurance in Glen Cove, with premiums ranging from $225 to $2,500 per month
—Redfin Real Estate Brokerage
Households in Glen Cove could see increased flood insurance premiums on policies that renew after April 1, due to the National Flood Insurance Program’s new system for setting prices.
The new rating methodology, called Risk Rating 2.0: Equity in Action, ensures “flood insurance rates are actuarily sound, equitable, easier to understand and better reflect an individual property’s flood risk,” according to a release from the Federal Emergency Management Agency. For new policies, this rating system has been used since last Oct. 1.
Risk Rating 2.0 compares rate changes with the legacy rating system that has been in place since the 1970s. “The comparison data debunks a huge myth held by many critics of the new methodology that under the old system, flood insurance rates were not subject to regular annual increases,” David Maurstad, a senior executive of the National Flood Insurance Program, said in a FEMA news release. “The truth is rates have gone up every year for all policyholders and will continue to do so if no action is taken.”
“The side-by-side comparisons show some policyholders now will experience decreases under year one of Risk Rating 2.0,” Maurstad added of the change, “while a majority of remaining policyholders will see premium increases mostly on par with what they already pay.”
FEMA said that the new methodology takes into account the cost of rebuilding, which ensures “equitable” rates for all policyholders.
In Glen Cove, which is near the Long Island Sound and Hempstead Bay, many new residents who buy homes may not realize they are at risk of flooding. During Hurricane Ida last year, homes, schools, businesses, and roads were flooded with more than 8 feet of water, the Herald reported. The storm caused closures and severe damage to the Glen Cove Police Department, library, and senior center.
Flood Factor, a flood risk tool created by the nonprofit First Street Foundation, found that 92 homes in Glen Cove were impacted by Hurricane Sandy in 2012. This year, roughly 34 properties have a 50 percent chance of water reaching or flooding the buildings on them.
According to Redfin, a real estate brokerage that details market trends, approximately 1,050 homes in Glen Cove are at risk of flooding. Two percent of those homes in Glen Cove are required by their mortgage companies to have flood insurance policies. Premiums can cost anywhere from $225 to $2,500 per month.
Lydia Wen Rodgers’s home on East Island has a high risk of flooding, surrounded as it is by the Sound and Dosoris Pond. Nor’easters and heavy storms have often left area streets submerged. “Not all houses on East Island are required to have flood insurance policies from the mortgage companies,” Wen Rodgers said. “There are a few spots that are elevated and don’t require it. However, the majority must have it.”
After the change in FEMA’s rating policy, Wen Rodgers’s premium went down from over $5,000 to about $3,600. “Flood insurance has steadily gone up, never down,” she said. “It shocked us that the new map actually allowed a decrease in premium.”
Although she is pleased for now, Wen Rodgers said she was certain rates would eventually increase.
High-risk areas for flooding, as defined by FEMA, are areas with a 1 percent annual chance of flooding and 26 percent chance of flooding over the course of a 30-year mortgage. In Glen Cove’s low-lying neighborhoods — areas that saw widespread damage during Hurricane Ida last year — the base floodplain, where flood elevations are provided, is also considered when determining risk.
On FEMA’s website, a flood insurance rate map can help determine risk by location. At Mike Walsh’s State Farm Insurance office in Bellmore, Chris Bauer, the agency’s flood specialist, showed the Herald how FEMA’s mapping system works. Entering an address into the mapping service, FEMA takes into account factors including distance from the shoreline and elevation to determine the risk. Maps are drawn based on where there were losses and damage due to floods.
Insurance companies cannot write National Flood Insurance policies — they must be written through FEMA. An agency’s licensing can, however, allow employees to write policies for FEMA, using the mapping system as a tool to determine risk.
But this requires the first year’s premium be paid in full. After that, Bauer added, customers can opt to have flood and home insurance monthly premiums built into a mortgage payment.
According to FEMA, there are some things that will not change with Risk Rating 2.0, such as limiting annual premium increases — most rates cannot increase more than 18 percent year to year. Additionally, flood insurance rate maps will still be used.
Risk Rating 2.0 State Profiles can be found on FEMA’s website, fema.gov, along with additional information on the new system. Downloadable Excel spreadsheets break states down by ZIP codes, so homeowners can see what to expect. Some policies in Glen Cove will see significant premium decreases.
According to FEMA, current and potential National Flood Insurance policyholders should contact their insurance company or agency to learn about their specific rates, and whether the changes will affect their policies.
“There’s no choice in the matter,” Wen Rodgers said. “FEMA decides on the zones and can change the rules at any time. Homeowners on the coast are at the mercy of FEMA.”
