Many of you have seen or heard the buzz in local and national news media about the changes in the National Flood Insurance Program.  Two words: maps and subsidies.  Flood policyholders know what I am talking about because you noticed your bill doesn't look the same as last year.  For the rest of us that don't have flood insurance, pay attention. This may be effecting you and you don't know it yet.

So there are the haves an have nots in the flood insurance world - those that have it and those that don't. The National Flood Insurance Program (NFIP) recently re-drew a number of flood insurance maps which shifted the borders of flood plains.  Homeowners that were not previously in a flood plain are finding out that they may need flood insurance.

Just because you are in the flood plain doesn't mean you have to get flood insurance.  However, if you have a mortgage on your property, you won't have a choice.  The banks and mortgage companies will require that you carry coverage equal to the balance of the loan or the flood insurance maximum building coverage of $250,000, whichever is less. 

If you are new to the flood insurance group, don't feel bad.  Your peers that already have flood insurance are feeling it much worse that you are.  Existing policy holders are seeing significant increases in flood insurance costs.  The federal government is removing subsidies for homeowners in flood prone areas by taking dramatic rate increases.  Secondary homes, businesses, and those homeowners that have severe repetitive flood insurance losses are seeing 25% rates increases with the likelihood of another 25% next year.

Local, state and Congressional leaders are taking the issue head on by meeting with residents in flood prone areas.  Stay tuned to see how it plays out on the national stage. 

Regards,

Edward P. Hackett, CIC CRM

Vice-President