While hurricanes are widely perceived as primarily a threat to warmer locales, New York is no stranger to storm damage.
In 2004, Hurricanes Ivan, Frances and Jeanne all caused damage to coastal areas of the state as did Hurricane Gloria in 1985, Hurricane Donna in1960 and the Great New England Hurricane of 1938.
Thus, with the latest projections indicating that Hurricane Irene will come within close proximity of the New York City, insurers have ample cause for concern. According analysis by data provider
Moreover, according to an analysis by
Like other states, New York has a residual market plan, the New York Property Insurance Underwriting Association (NYPIUA), which acts as a market of last resort for residential and commercial property insurance in the state. Nonetheless, the state maintains a robust private market, with State Farm, Allstate and Travelers each achieving double digit market share in homeowners insurance according to direct written premiums.