Sunday, August 21, 2011

Flood-insurance policies has risen 26.7%

New York experienced a series of storms and floods at the same time that devastating Gulf of Mexico hurricanes such as Katrina and Rita, and this leads to more flood-insurance policies sold out.In the last few years, there are more dramatic weather events that have been occurring.Nassau and Westchester exceeds more modest increases which backs most flood-insurance policies.

Big storms with heavy media coverage have an effect on perception.Meteorologists are also predicting a more active than normal Atlantic hurricane season, which runs through the end of November.The insurance premiums cost anywhere from a few hundred dollars a year for those not in flood-prone areas to more than $2,000 a year for waterfront property.People with homes outside of federally designated flood areas are purchasing insurance, just to be safe.

Nassau and Westchester, the federally backed flood-insurance policies rose 88%.Banks have also played a role in the spike.Banks are asking more borrowers to purchase flood insurance when they buy a new home or refinance.