Cheaper federal insurance for LIers added to flood map

Thousands of Long Island property owners - added last fall to the new federal high-risk flood zone map and suddenly faced with a whopping flood insurance bill - will be eligible for lower-cost federal coverage starting in January that could save them $1,000 a year.

After a wave of complaints from angry homeowners saying they couldn't afford standard flood insurance policies covering them after their homes were added to the "high risk" flood zones last year, the Federal Emergency Management Agency will allow them to pay the much lower rates of those living outside the flood zones. The lower premium will be available for two years under the FEMA plan.

"So many people have said, 'I can't afford it' - economic problems were a very high factor in this decision," said Mary Colvin, regional head of FEMA's flood insurance programs, about the change that will affect Long Island and many other property owners around the nation. She said the agency soon will start to notify owners and insurance agents about the change.

Bob Nethaway, 53, of Wantagh, welcomed the news. He said he missed the chance to get a less expensive "preferred risk policy" before his Wantagh home was included in a flood zone. Now, because his mortgage lender requires the insurance, he pays an $1,800 yearly premium. When told about the lower rate temporarily, he said, "That would offer me a great benefit, because like most of America, I'm living paycheck to paycheck."

Half are insured

More than 25,000 Long Island property owners were added to the high risk-flood zones that went into effect last September, when FEMA substantially broadened the area it considered prone to floods. The new flood zone maps were designed to reflect the latest topographical information identifying the "flood plain" - the normally dry areas where water will accumulate or flow during a 100-year flood event, such as that hurricane that ravaged portions of Long Island in September 1938.

Federal officials estimated that only about half of those homeowners have purchased flood insurance policies, which can reach from $1,000 up to $2,200 or more annually. Many of those are not required to have it, as long as they don't have a federally backed loan on the home.

"A lot of people are retired and they can't afford it," Colvin said. "The largest factor is economic, but a lot of people think they'll never get flooded" from a storm.

Many people, surprised to find they suddenly needed flood insurance, complained bitterly, said Rep. Peter King, (R-Seaford). He met with FEMA officials Friday, and said he wants the agency to extend the option beyond two years. The vast majority of the newly added properties are in Nassau, many in King's district.

"We've had people who live north of Sunrise Highway who had no idea that they were in the [newly drawn flood] zone," King said.

While the new offer will be too late for this year's hurricane season, King said it would be prudent for property owners to get flood insurance now rather than risk storm damage before January.

Taken by surprise

Many insurance agents said they hadn't heard about FEMA's decision. Although they stand to lose some commission money from the lower premiums, they said they welcomed the change because the increases had financially stressed their clients.

"Most people who didn't have mortgages didn't purchase policies" before the maps changed, said Denis Miller, a Long Beach insurance agent with many clients in flood zones.

Gerald Miller, 75, of Bellmore, said he was told two years ago that if he got flood insurance he would be able to keep a lower preferred risk rate of $350 a year. When his policy expires next month, he was told it would go up to $1,381. "We're talking about a 400 percent increase - it's beyond my range," he said.

When his policy expires in September, he'll still have to pay the higher rate until next year. Since his mortgage is paid off, he won't be required to continue coverage and said he will likely drop it. "They're changing the goalpost in the middle of the football game."

With Bill Bleyer and Emi Endo