Standard homeowners’ and renters’ policies don’t cover damages that can be caused by the kind of heavy rains that hit New York City on Friday.
It’s an unfortunate fact: Standard homeowners’ and renters’ insurance policies don’t cover damages caused by flooding.
People who live in flood-prone areas are generally required by their mortgage lenders to buy a separate flood insurance policy. But if you own your home outright, or rent it, you need to do your own cost-benefit analysis and decide whether to buy such coverage.
It may be too late for residents of New York City and the surrounding area to buy policies to cover damages caused by the torrential rains that flooded the region on Friday, but more people may want to consider getting such policies for their future protection: A quarter of flood claims arise from properties that are outside high-risk areas, according to the Federal Emergency Management Agency, but most homeowners in those areas are eligible for lower rates.
