Metro

Owners let flood policy evaporate

Nearly half of the thousands of homeowners waiting for FEMA and other governmental disaster assistance following Sandy had let their flood insurance lapse, according to industry estimates.

“We were told flood insurance went up to $2,400 a year,” said Dan Shaughnessy of Rockaway Park, whose home was destroyed. “My wife was just laid off, and we haven’t had [the ocean] touch the bay since 1936, so I said, ‘OK, right now, while money is tight, I’ll cut out the $2,400 a year.’ ”

Nearly all standard homeowner policies don’t cover flood damage, which requires a separate policy.

Generally, mortgage lenders require a homeowner to have flood insurance, but only until the house is paid off. And some homeowners wrongly believed they would be covered by their standard homeowner policies.

“Luckily, FEMA came through with $30,000, thank God, which is going to help us move forward,” Shaughnessy said.

“We were dying to cancel the flood coverage. It was $600 a year,’’ said Carol Ingardia, whose home in the ravaged section of Midland Beach, SI, was severely damaged. She and her husband canceled their flood coverage in 2010.

“Now we are waiting for the FEMA inspector” to grant a claim worth up to $31,900, she said.

Nearly half of the homes in the metropolitan area within one block of the coast lacked flood insurance, according to industry estimates. But, it is anticipating a surge of demand following Sandy.