MILFORD, NJ — Sunday markings three years since hurricane IdaThe storm’s remnants surprised authorities in the Tri-State area with devastating, deadly floods.
Now, some survivors tell investigative journalist Mahsa Saeidi that they are facing a new challenge: their insurance premiums are skyrocketing.
Hurricane Ida survivor says insurance money wasn’t enough for damage
On September 1, 2021, water began flooding Leanna Jones’ home in Milford, New Jersey. She and her children eventually had to be rescued from the flood.
Three years later, she tells CBS News New York that she now feels like she’s underwater. The problem is her insurance.
“It’s just not affordable, I can’t, I can’t afford it,” she said.
The headaches started after Ida Jones returned to find her appliances broken and everything covered in mud.
According to an inspection report, parts of her home were also damaged. The basement foundation now leaks more and there are cracks in the porch wall. Jones said the insurance money wasn’t enough.
“I have the structural report which shows the damage was caused by the flooding, but unfortunately we don’t cover that because the porches are not covered,” she said.
Jones took out a federal disaster loan that now has to be paid. That’s on top of two insurance bills.
CBS News New York found that her homeowners insurance has gone up 55% since the hurricane. An even bigger expense is her flood insurance, which has gone up 57%.
“This was supposed to be my dream home,” Jones said.
Leanna Jones
New Jersey woman says insurance claim after Hurricane Ida took over her life
Jones had flood insurance through a private company, but according to the Insurance Information Institute, most homeowners, seven in 10, have their insurance through the government-backed National Flood Insurance Program (NFIP).
“I have no other choice, NFIP is my only option,” said Jones’ neighbor, Michelle Belding.
Ida also abused the mother of five children.
“The floor warped like an accordion,” she said.
Belding says the insurance claim took over her life. Since then, her NFIP policy has increased by 47%.
“And it doesn’t cover personal property or rentals,” Belding said. “And this, this could go up next year and for what?”
As life slowly returns to normal, Belding wonders about the value of insurance. She had full coverage, but she says Ida still cost her thousands.
“It changes your whole life, and this was only two feet [of flooding]”, she said.
There was a time when she loved the creek behind her house and life on the aptly named Water Street, but not anymore.
“I come out and I’m like, uh, you know, overrated,” Belding said.
Some homeowners in the Tri-State area should expect a rate increase for flood coverage
Senior analyst at AM Best Sridhar Manyem assesses the financial strength of insurers.
He says the NFIP has changed the way it prices policies in 2022. Previously it was a one-size-fits-all approach, and now it’s more fair, he says. Rates are based on individual ownership, meaning the higher the risk, the higher the premium.
“The type of construction you have, the distance to the water,” Manyem said.
According to federal data analyzed by CBS News New York, people in New Jersey pay an average of $953 a year for flood insurance. In New York, that’s a comparable rate of $943. That’s the current median insurance cost.
But the NFIP says that under the new pricing structure, they would have to pay an average of twice as much in both states — $1,943 in New Jersey and $1,834 in New York. That’s the median risk-based insurance cost, a more relevant measure, according to the NFIP.
So if you live close to the water, you can expect a rate increase, but not all at once.
“There is a maximum to the increase,” said Manyem.
The increase and severity of weather events has thrown property insurers into chaos in many states, but so far the Tri-State has been spared. The only exception is in 2021, when insurers in New Jersey nearly lost money.
That’s because Ida was not just a flood that impacted flood insurers, but also a wind event that impacted homeowners insurers.
If homeowners want to lower their rates, they can make changes to their home, such as increasing the air conditioning to protect it from water, or make changes to their policy, such as increasing the deductible.
Mahsa Saeidi
