Brooklyn Residents Are Fighting Back Against Climate Change with Smart Insurance Strategies

As extreme weather events become the new normal in New York City, Brooklyn residents are discovering that traditional insurance coverage simply isn’t enough to protect their homes and livelihoods. Between 2020 and 2023, average premiums doubled for Brooklyn apartment buildings with at least 50 units, and rose more than 50% in Manhattan and Queens. That’s higher than the national average. This dramatic surge in costs has prompted local insurance agencies to develop innovative approaches to help residents prepare for an uncertain climate future.

The Growing Climate Risk Challenge in Brooklyn

NYC faces risks from four types of flood hazards: pluvial, fluvial, coastal, and groundwater, each with a unique geography of exposure that will expand in different ways in the future due to climate change. Brooklyn, surrounded by water on three sides, faces particularly acute vulnerability. Brooklyn’s commercial developments reduce the land’s ability to absorb water, and since it is surrounded by water on three sides, Brooklyn is especially vulnerable to flooding.

The borough has already experienced the devastating effects of climate change firsthand. In 2012, Hurricane Sandy brought unprecedented flooding to New York City, destroying homes, property, and infrastructure and racking up $19 billion in damages. Residents who had never considered buying flood insurance incurred hefty costs to repair and rebuild. Hurricane Ida’s record rainfall in September 2021, as well as the September 2023 flooding caused by the remnants of Tropical Storm Ophelia, reinforced the reality that NYC is not immune to the unpredictable dynamics of climate change.

How Local Agencies Are Adapting Their Approach

Brooklyn’s insurance landscape is evolving rapidly as local agencies recognize the need for comprehensive climate adaptation strategies. Officials and insurance experts with FEMA, the city and local nonprofits said they believed the uptick is due in large part to their ongoing efforts to educate homeowners and renters about the importance of flood insurance.

One standout example is Max J. Pollack & Sons, a family-owned Insurance Company Brooklyn that has been serving the local community for over 80 years. Today, we serve clients throughout the entire greater New York City area from our office in Park Slope, Brooklyn. We are a family business that has been serving the New York Metropolitan community for over 75 years. We believe that the ongoing success of our company is due to a combination of extensive insurance industry knowledge, coupled with something you don’t see too often in today’s world — old-fashioned, personalized attention to our customers’ needs.

Local agencies like Max J. Pollack are helping residents navigate the complex landscape of both federal and private flood insurance options. In addition to flood insurance via the NFIP, many private insurers have started offering flood insurance. New York-based brokerages like Coastal Insurance can provide guidance and quotes for private flood insurance. Other private insurers like Neptune, Chubb, and National General are some of the top choices for New Yorkers, and may provide more coverage than an NFIP policy.

Innovative Programs Making Insurance More Accessible

Recognizing that climate adaptation requires innovative solutions, several groundbreaking programs are emerging in Brooklyn and across NYC. The project’s overarching goal is to increase the financial resilience of low- and moderate-income households in New York City to escalating flood risk through the use of inclusive insurance. Inclusive insurance refers to any program or policy that makes insurance coverage available to those previously unserved or underserved by the market.

This project is a joint effort between Environmental Defense Fund, the New York City Mayor’s Office of Climate and Environmental Justice, the Center for New York City Neighborhoods, and SBP. It also involves research and development work with Global Parametrics and technical assistance from Guy Carpenter and Swiss Re Corporate Solutions. These partnerships are creating new models for community-based flood insurance that could serve as templates for other cities facing similar climate challenges.

The Urgency of Acting Now

The data tells a compelling story about why Brooklyn residents can’t afford to wait. There are 1.3 million New York City residents living in or next to a floodplain, or low-lying area that gets flooded often. That’s pretty scary when just one inch of water is needed to cause roughly $25,000 of damage to a property, according to the Federal Emergency Management Agency (FEMA). Yet, only 3 percent of residential properties in New York have flood insurance at all.

Local insurance professionals are sounding the alarm about this coverage gap. The impetus for NYC residents to obtain flood insurance is to provide them with a means to rebuild if their home is subject to flooding. As we saw with Hurricane Ida, where it rains, it can flood. Flooding is the most common and costly natural disaster in the United States. One inch of water can cause $25,000 in damage.

Practical Steps for Brooklyn Residents

For Brooklyn residents looking to protect themselves, local agencies recommend starting with a flood risk assessment. A great place to start is at Flood Help NY. The site outlines in clear language how New Yorkers can assess their flood risk and insurance requirements, and what you can do to be “flood-safe”. Type in your home address to access an interactive map that will indicate your flood risk: minimal hazard, moderate risk, high risk, or highest risk.

Insurance experts also emphasize that flood coverage isn’t just for homeowners. Every person, whether they’re a homeowner or renter, should have adequate flood insurance. Often renters overlook this or don’t think this is necessary for an apartment building.

Looking Toward a More Resilient Future

As climate change continues to reshape Brooklyn’s risk landscape, the borough’s insurance community is proving that adaptation and innovation go hand in hand. From long-established family agencies providing personalized guidance to cutting-edge inclusive insurance programs, Brooklyn is becoming a model for how local communities can build financial resilience against climate threats.

The message from local insurance professionals is clear: the time to prepare is now, before the next major storm hits. With the right coverage and guidance from experienced local agencies, Brooklyn residents can face the climate future with greater confidence and security.