This story is reprinted with permission from FC&&S Legal, the industry's only comprehensive digital resource designed for insurance coverage law professionals. Visit the website to subscribe.
Flood insurance is already difficult to afford for many homeowners in New York City, and the situation only will worsen as flood maps are revised to reflect current risk and if the federal government continues to move toward risk-based rates, according to a study by the RAND Corporation.
RAND researchers found that flood insurance is currently difficult to afford for 25 percent of the households in owner-occupied one- to four-family residences in New York City's flood-prone areas. That percentage is projected to rise to 33 percent if proposed updates to the Flood Insurance Rate Map (FIRM) are adopted, special rates for older homes are eliminated, and grandfathering provisions allowing rates to be based on the old rather than the updated FIRM are dropped, the report says.
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