The cost and affordability of flood insurance in New York City

This report examines the cost of flood insurance in New York City and the ability of homeowners to afford it. It develops projections for how changes in flood maps and the pricing practices of the National Flood Insurance Program might increase premiums and analyzes the potential consequences of those increases on households and communities. It also develops and evaluates several different approaches for assisting households that have difficulty affording flood insurance. These include financial payments to households to offset the cost of flood insurance as well as mitigation grants and loans that reduce flood insurance premiums by making the home less susceptible to flood risk. 

The report addresses four primary questions:

1. To what extent is purchasing flood insurance burdensome for households living in one- to four-family homes in the study area?
2. How might flood insurance premiums change in the study area?
3. What effect will flood insurance premium increases have on households and communities in the study area?
4. What are some promising options for a program that helps reduce the impact of higher flood insurance premiums in the study area and how much would they cost?

The report also recommends several considerations for policymakers weighing the advantages and disadvantages of different flood insurance affordability programs, including funding source, program length, program availability while accounting for potential housing cost rises, and program buy-outs upon property sale.