What will rising flood insurance rates mean for Hudson County?

After half a century spent in Kearny, Eileen Verdi plans to pack her bags. As many Hudson County residents, Verdi lives in an area at risk of flooding, although it wasn’t the risk of basement flooding that made her rethink where she wants to be.

She has flood insurance, after all.

But its price is rising, and that’s just another reminder of the potential savings it would find in another city.

“We are considering moving, yes, because of the high taxes and the high this and the high that,” Verdi said. “Home insurance high, auto insurance high. I would say 50% of my income goes to insurance.

Many Hudson County homeowners can expect their government flood insurance rates to rise next year and for many years to come as the Federal Emergency Management Agency (FEMA) rework its pricing. formula. Essentially, properties at higher risk of flooding will pay more than those at lower risk.

The average cost of flood insurance in New Jersey is $ 949 per year.

In a county known for its basements and roads flooded during heavy storms, households across the county will see the effect on their bills.

It remains to be seen whether the cost will factor into whether current or potential residents, like Verdi, consider moving elsewhere. Some say that only repeated conflicts caused by the floods themselves will trigger such decisions.

“Property values ​​along the Hudson River waterfront, even when the market comes down to land, will remain very high, and those who can afford it, who are upper middle class residents, will buy or rent homes. units, ”Kearny Mayor Al Santos said. . “I don’t think that’s going to change.”

Each of Kearny’s FEMA insured properties will see their rates increase next year, FEMA data shows. Santos said he believed his residents’ bills at the end of the price restructuring would not be as high as those for properties more directly on the coast. Many of its flooded residents are working class, dependent on the government-subsidized program, and would likely have seen their rates go up anyway, he said.

Even for them, he believes experiences during storms will be more likely to repel them than slightly higher bounties.

“The extra $ 100 a year won’t make a difference,” Santos said. “It’s the mental angst and the stress of worrying about whether you’re going to be inundated and if you’re going to be inundated, having to go through the cleanup. Having to throw away personal items, some of which cannot be replaced due to their sentimental value. It is the stress you experience living in a flood zone.

Older homes often prevent residents from completing projects that could mitigate property damage, said Rocco Russomanno, Harrison’s construction manager and municipal engineer. The city has blocks of 10 or more attached townhouses, preventing homeowners if they wanted to elevate their property, he said.

“A lot of these old houses, I think if they get anything it’s like basement flooding,” Russomanno said. “It’s not a flood of living space, so I don’t know if it’s a bit more tolerable. Everyone has their own levels of what they can accept and what they cannot.

For Becky (who requested that her last name not be used), an increase in flood insurance premiums would take some effort to be identified. As the owner of a condominium in Hoboken, where she lives and the other she rents, her insurance is only part of the cost of her homeowners association.

Her units have never suffered any flood damage and she does not know if recent storms have caused flooding in building basements, she said. Hoboken can be an expensive place to live and flood insurance is only part of the cost, Becky said, but depending on the price hike, it could make the city even less affordable.

“I understand that when a lot of claims come up the premiums will go up,” she said. “Of course, $ 1,000 a year can dramatically change your mind about wanting to own rather than sell your property. “

Flood insurance also falls short of the financial toll of floods. Pete Johnson, whose Progressive Building Management Company manages several condominium complexes in Hoboken, said the insurance covered damage from Super Storm Sandy soon after.

“Say the gym was flooded,” said Johnson, vice president of Progressive. “They don’t deal with any kind of items like that… gym equipment, nothing was insured, so the association had to buy it all back.”

Verdi can’t imagine living in Kearny without flood insurance.

“It’s impossible to get rid of (flood insurance) because I see what happened with Sandy,” Verdi said. “You really need it. In (hurricane) Ida I did not flood. I had surface water, but I didn’t flood, and some people do.

“This is the luck of the toss with all the storms.”


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