Sagaponack Residents Qualify for FEMA. Ho Hum.

By Alexendra Wexler

Since Hurricane Katrina wreaked havoc in New Orleans several years ago, not to mention the thunderstorms this past weekend which had winds at nearly hurricane levels, the reality of a massive hurricane hitting the East End has been taken more seriously. Ironically, the residents of the Village of Sagaponack have recently qualified for the Federal Emergency Management Association's Flood Insurance program. Whether or not Sagaponack villagers will be affected by this change is another matter.

The average house in Sagaponack is worth approximately five times the average house in New York State. Because their houses are so expensive, most Sagaponack residents are unlikely to take advantage of this new insurance option, says Tim O'Brien, the Director of Private Client Services at Cook, Hall, & Hyde, Inc. in East Hampton.

"The maximum FEMA coverage available to residents of Sagaponack is $250,000," he said. "That wouldn't be enough for most people in Sagaponack to rebuild their wine cellars." However, O'Brien added that there is also $100,000 in coverage available for the contents of your home.

When she was informed of FEMA's recent decision to cover the homes in her area, Sagaponack resident Pamela Allardice said, "That's not something I would probably be interested in," as the maximum coverage limits of the FEMA insurance are much lower than the value of her house and its contents. Gil Shapiro said that he, too, was not interested in purchasing flood insurance from FEMA for his home. "My house is 1.1 miles from the ocean, and the coverage I have with [private insurance company] AIG is great because if you live within a mile of the ocean, you pay a much larger premium than I do." Shapiro also said that the type of coverage FEMA offers is "greatly different" from the coverage he now has with his private insurance company.

O'Brien confirmed this, saying that although the FEMA flood insurance is lower in cost, it is not as broad as private flood insurance. However, he added that the situation on the East End is a bit of an anomaly. "Ninety-nine percent of Americans with flood insurance have FEMA flood insurance," he said.

As to whether or not the Village of Sagaponack expected this reaction, the Acting Village Clerk, Rhodi Winchell, said that the village made the decision to meet the guidelines for FEMA insurance simply, "Because everybody else does."

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