From: The Queens Chronicle
Hurricane
The New York State Department of Financial Services parked
a van in Howard Beach last week where representatives helped residents with
questions about insurance, including what to do if they have had their policies
dropped.
Hurricane Sandy
The New York State Department of Financial Services parked
a van in Howard Beach last week where representatives helped residents with
questions about insurance, including what to do if they have had their policies
dropped.
In the midst of shared kitten pictures and snarky political comments, a
Howard Beach resident’s quest for information appears on a Facebook News Feed:
“Hearing some of my neighbors have had their insurance
policies dropped, anyone else?”
Within minutes, comments popped up
responding to the question.
“Heard it too, a shame.”
“Yes, my parents were dropped.”
“Not surprised.”
Dozens, perhaps more, homeowners in Howard
Beach, have had their home insurance policies dropped since Hurricane Sandy,
leaving many concerned about whether they will be able to get coverage now that
the neighborhood has been added to a flood zone.
Judy Close, a spokeswoman for state Sen. Joe
Addabbo Jr. (D-Howard Beach
“It has been a problem we’ve seen since Irene,”
she said, noting that some homeowners had their policies dropped right before
Hurricane Sandy hit.
State Farm has dropped several of its customers
in Howard Beach and sources say it will no longer write policies in the neighborhood.
Arlene Lester, a spokeswoman for State Farm,
could not confirm if the company will stop writing policies in Howard Beach,
but said it continually assesses the risk situation in coastal communities.
“Doing so helps keep the promises we’ve made to
our customers and assists our efforts in maintaining financial stability,” she
explained.
Insurance companies and Howard Beach residents
have had an acrimonious relationship since Sandy
“I worked for an insurance company and I’ve
never been more disappointed in the industry,” said one Howard Beach resident
at that meeting.
One of the central arguments at the time was
whether the damage caused by Sandy
Though most of the damage was deemed to be
flood-related, some structural issues, such as missing shingles and broken
windows, were covered, and homeowners filed claims for that damage.
Representatives from the Department of Financial
Services, who were assisting homeowners in Howard Beach last week, said they
had heard of homeowners being dropped by insurance companies in other hard-hit
areas, including in coastal Long Island communities.
But even though damage from Irene and Sandy
appear to be the cause for insurance companies to be dropping policies, it may
not be the only reason.
A DFS representative said the agency would need
to look at the letters sent to each specific homeowner by his or her insurance
company notifying them of their decision to not renew a policy in order to
understand exactly why it’s happening.
Homeowners can do that by filing a complaint
with the agency online atdfs.ny.gov/consumer/fileacomplaint.htm
There are some companies still writing policies
in the area, including Nationwide and Narragansett Bay . Other companies are
revamping their own maps to coincide with the temporary flood maps FEMA
released in February. Though that could mean they may stop writing policies, it
could also be a sign that they will continue to offer ones, albeit at higher
premiums.
Flood insurance is still available for anyone in
Howard Beach because it’s underwritten by the federal government. However,
premiums may be high, especially for residents who do not take steps suggested
by FEMA, including raising homes above flood level.
Addabbo announced that the DFS will bring its
services van back to Howard Beach. It will be parked outside Staples on
Saturday, March 30 from 10 a.m. to 5
p.m.
Anyone with questions about insurance can also
call the DFS at 1 (800) 339-1759, from 8 a.m. to 8
p.m. , Monday through Friday, and from 10 a.m. to 5
p.m. , Saturday and Sunday.
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