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Flood insurance rates set to increase to $18,000 for some.

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knothead
othershoe1030
6 posters

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othershoe1030

othershoe1030

This is a problem we all should be concerned about. Flood insurance rates are set to skyrocket in the next few years. Congress is voting next week to make changes to this law. Unless we want to live in a ghost town this needs to change. The way it is only people who own their homes outright could avoid this hike in rates.

http://www.npr.org/2014/02/27/283157860/overhaul-of-a-fema-program-has-homeowners-calling-congress

contact your representative:

http://www.house.gov/representatives/find/

knothead

knothead

othershoe1030 wrote:This is a problem we all should be concerned about. Flood insurance rates are set to skyrocket in the next few years. Congress is voting next week to make changes to this law. Unless we want to live in a ghost town this needs to change. The way it is only people who own their homes outright could avoid this hike in rates.

http://www.npr.org/2014/02/27/283157860/overhaul-of-a-fema-program-has-homeowners-calling-congress

contact your representative:

http://www.house.gov/representatives/find/

OS, do you know the Bill number?

othershoe1030

othershoe1030

knothead wrote:
othershoe1030 wrote:This is a problem we all should be concerned about. Flood insurance rates are set to skyrocket in the next few years. Congress is voting next week to make changes to this law. Unless we want to live in a ghost town this needs to change. The way it is only people who own their homes outright could avoid this hike in rates.

http://www.npr.org/2014/02/27/283157860/overhaul-of-a-fema-program-has-homeowners-calling-congress

contact your representative:

http://www.house.gov/representatives/find/

OS, do you know the Bill number?



From the Independent Insurance Agents site: Biggert-Waters 2012 News

There have not been any changes in the National Flood Insurance Program (NFIP) since 2004. Now we have a new bill titled “Biggert-Waters 2012” (BW 2012). Biggert-Waters 2012 is a comprehensive piece of legislation affecting the National Flood Insurance Program. The biggest piece of legislation included in this reform act is that the NFIP’s authority has been extended until 2017. This is not the only change, however. It is important to remember that there will be many changes to the program in the coming months and even years. These changes will make it vitally important to stay informed. The page provided here by Big “I” Flood will be continually updated with all of the latest information regarding Biggert-Waters 2012. Bookmark this page and check back frequently.

A great source for the most up-to-date information is the Agents.FloodSmart.gov website. Please refer to this section of the FloodSmart website for the latest Biggert-Waters news: FloodSmart's Agent Website - Biggert Waters 2012.

Full Text of Bill H.R. 4348, Title II – Flood Insurance, Sec 100201-100253
Big "I" Summary of Biggert-Waters Flood Insurance Reform Act
Section By Section Summary of Biggert-Waters Flood Insurance Reform Act

http://www.independentagent.com/Products/Insurance/Flood/Pages/BiggertWaters/biggertwaters.aspx

FEMA's information:  http://www.fema.gov/flood-insurance-reform-act-2012

knothead

knothead

othershoe1030 wrote:
knothead wrote:
othershoe1030 wrote:This is a problem we all should be concerned about. Flood insurance rates are set to skyrocket in the next few years. Congress is voting next week to make changes to this law. Unless we want to live in a ghost town this needs to change. The way it is only people who own their homes outright could avoid this hike in rates.

http://www.npr.org/2014/02/27/283157860/overhaul-of-a-fema-program-has-homeowners-calling-congress

contact your representative:

http://www.house.gov/representatives/find/

OS, do you know the Bill number?



From the Independent Insurance Agents site: Biggert-Waters 2012 News

There have not been any changes in the National Flood Insurance Program (NFIP) since 2004. Now we have a new bill titled “Biggert-Waters 2012” (BW 2012). Biggert-Waters 2012 is a comprehensive piece of legislation affecting the National Flood Insurance Program. The biggest piece of legislation included in this reform act is that the NFIP’s authority has been extended until 2017. This is not the only change, however. It is important to remember that there will be many changes to the program in the coming months and even years. These changes will make it vitally important to stay informed. The page provided here by Big “I” Flood will be continually updated with all of the latest information regarding Biggert-Waters 2012. Bookmark this page and check back frequently.

A great source for the most up-to-date information is the Agents.FloodSmart.gov website. Please refer to this section of the FloodSmart website for the latest Biggert-Waters news: FloodSmart's Agent Website - Biggert Waters 2012.

Full Text of Bill H.R. 4348, Title II – Flood Insurance, Sec 100201-100253
Big "I" Summary of Biggert-Waters Flood Insurance Reform Act
Section By Section Summary of Biggert-Waters Flood Insurance Reform Act

http://www.independentagent.com/Products/Insurance/Flood/Pages/BiggertWaters/biggertwaters.aspx

FEMA's information:  http://www.fema.gov/flood-insurance-reform-act-2012

Appreciate the information OS, gonna fire off a email to Jeffy Poo! Thanks much!

2seaoat



Incremental changes are needed, not overnight stupidity. Yes, the rates have been too low for the claims, but a national catastrophic fund which widened the coverage from just floods to wind, and earthquakes could give Florida some relief. Knock on wood, but more hurricanes in Florida bring the tourist industry in direct conflict with the insurance industry. Something is going to have to give, and higher rates are a given.

othershoe1030

othershoe1030

Here's a link to a video that covers the history of the flood insurance program. It is fact based as far as it goes but doesn't address the impact on certain situations. It is leaving some aspects of this situation out.  

Granted, it is not reasonable to expect the government to subsidize replacement of properties with repetitive claims but there are fixes for certain types of flood prone structures. Many people have raised their homes above expected future flood levels and continue to live there without fear of loosing their homes and not having coverage.

What I don't get at the moment is this...looking at pictures of flooded landscapes, say in the upper midwest, roof top after roof top poking up out of the flood waters...how many of those homeowners didn't have flood insurance?  You know there were many who did not because the owners are crying about it on camera. Why were they not required to carry flood insurance? How much more money would be in the flood insurance pool (no pun intended) if they had been required to carry flood insurance? If more homeowners are in the risk pool the rates would go down. Why isn't this an option instead of raising the rates for those who have taken the step to insure voluntarily?


https://www.youtube.com/watch?v=tpeqSQr3ngY

ZVUGKTUBM

ZVUGKTUBM

I guess it boils down to what the tax-payer should be expected to subsidize.

The flood insurance program is unstustainable the way it is currently managed. It has to change, period. People who live in areas prone to flooding should become aware of what is coming and plan accordingly.

http://www.best-electric-barbecue-grills.com

ZVUGKTUBM

ZVUGKTUBM

I will go as far as saying there should have never been a federally-backed flood insurance program in the first place. It would have stopped developers from building/overbuilding on barrier islands and in flood-prone areas around the nation.

The flood-insurance program ended up being another welfare guarantee so folks could build in danger-prone areas and not face the consequences of loss. What do we have as a result? Massive overbuilding on barrier islands that would never have occurred; massive development of lowlands and floodplains that might have been left natural or as the farmland it likely was, etc.

http://www.best-electric-barbecue-grills.com

othershoe1030

othershoe1030

ZVUGKTUBM wrote:I will go as far as saying there should have never been a federally-backed flood insurance program in the first place. It would have stopped developers from building/overbuilding on barrier islands and in flood-prone areas around the nation.

The flood-insurance program ended up being another welfare guarantee so folks could build in danger-prone areas and not face the consequences of loss. What do we have as a result? Massive overbuilding on barrier islands that would never have occurred; massive development of lowlands and floodplains that might have been left natural or as the farmland it likely was, etc.

Set aside barrier island development for a minute. What about flooding along rivers in the upper midwest due to sudden thaws? Aren't a lot of those homes not insured for flooding?  What if the burden were spread over nearly all properties with mortgages? Wouldn't that lower everyone's premiums to the pre-BW 14 levels or thereabouts?

We have to deal with the reality of the situation as it now stands. Are people supposed to evacuate all the cities along our major rivers?  What about Seattle, San Francisco, LA, Miami and NYC? I don't think that is reasonable. I agree with the catastrophic coverage idea of including earth quakes, wildfires, etc. as covered events.

othershoe1030

othershoe1030

knothead wrote:
othershoe1030 wrote:This is a problem we all should be concerned about. Flood insurance rates are set to skyrocket in the next few years. Congress is voting next week to make changes to this law. Unless we want to live in a ghost town this needs to change. The way it is only people who own their homes outright could avoid this hike in rates.

http://www.npr.org/2014/02/27/283157860/overhaul-of-a-fema-program-has-homeowners-calling-congress

contact your representative:

http://www.house.gov/representatives/find/

OS, do you know the Bill number?

Following is a letter written by the group supporting this new legislation to be voted on next week. It explains a lot and sounds very reasonable to me. I think the phrase 'unintended consequences' pretty much sums up the current law. In addition to raising flood insurance rates beyond the reach of most homeowners it would basically drop the bottom out of hundreds of real estate markets. The economy doesn't need any more problems like that!  



February 27, 2014
To: Members of the House of RepresentativesRe: Support for H.R. 3370,
The Homeowner Flood Insurance Affordability Act
 The undersigned organizations support H.R. 3370, the Homeowner Flood Insurance Affordability Act, and urge its passage. The legislation achieves many of the most important goals of our coalition by protecting both property owners who have played by the rules and settling real estate markets, while preserving the intent to offer flood insurance at true risk rates.

The legislation ensures that flood insurance will remain affordable for those who have built to code at the time of construction. It also removes the property sales trigger, which will provide a sense of security to the real estate market and treat both current property owners and potential purchasers equally.  The legislation includes several other positive provisions that our coalition supports, including increasing the home improvement threshold, reimbursing policyholders for successful map changes, preserving the basement exception, addressing problems relating to escrow accounts for policy holders, and refunding policyholders who purchased pre-FIRM homes after the enactment of the Biggert-Waters Act and subsequently paid higher rates.

Our coalition supports a fiscally sound, actuarially responsible NFIP that communicates to citizens their true flood risk.  We do not support the continued subsidization of severe repetitive loss properties.  However, we must protect property owners who have built as their government told them.  With this in mind, we have a dual goal:  to find an immediate solution to the unintended consequences of Biggert-Waters; and, to develop a long-term solution that works forAmerica.  The Homeowner Flood Insurance Affordability Act sets us on the path to accomplishing that.

For these reasons, we urge passage of the legislation.
Sincerely,

othershoe1030

othershoe1030

Here's a list of supporters of HR 3370

Current Signers
American Bankers Association
American Bankers Insurance Association
American Shrimp Processors Association
Independent Community Bankers of America
National Association of Home Builders
National Association of REALTORS®
National Waterways Conference
All Lines Insurance Group, Inc. - Clearwater, FL
Amelia Island Plantation Community Association – Amelia Island, FL
Arkansas Bankers Association
Bay Area Houston Economic Partnership (BAHEP) - Seabrook, TX
Bonita Springs Area Chamber of Commerce - Bonita Springs, FL
Bonita Springs Estero Economic Development Council - Bonita Springs, FL
Broad Channel Civic Association - Queens, NY
Burk Brokerage Real Estate - New Orleans, LA
Cameron Parish Police Jury - Cameron, LA
Chamber of Southwest Louisiana - Lake Charles, LA
City of Corpus Christi - Corpus Christi, TX
City of Minot - Minot, ND
Coin du Lestin Property Owners Association - Slidell, LA
East St. Tammany Chamber of Commerce, Slidell, LA
Emerging Young Professionals, Slidell, LA
Fargo Moorhead Area Association of REALTORS - Fargo, ND
Florida Bankers Association
Florida Realtors®
Grand Isle LA Mayor David Camardelle
Greater Baton Rouge Association of REALTORS® - Baton Rouge, LA
Greater Lafayette Chamber of Commerce - Lafayette, LA
Greater Lafourche Port Commission - Galliano, LA
Greater New Orleans, Inc. - New Orleans, LA
Greater Tampa Chamber of Commerce - Tampa, FL
Gulf Coast Bank & Trust Company - New Orleans, LA
Gulf Coast East Coast Coalition
Hancock Resource Center - Waveland, MS
Harvey Canal Industrial Association - Harvey, LA
Henderson Ford - Waveland, MS
Hillsborough County, Virginia
Historic Charleston Foundation - Charleston, SC
Historic Preservation Consultants - Montclair, NJ
Home Builders Association of Mississippi - Jackson, MS
Independent Insurance Agents & Brokers of Louisiana
Indiana Bankers Association
Jefferson Chamber of Commerce - Metairie, LA
Jefferson Parish President John Young
KGP Management, LLC. - Miami Beach, FL
Lakeview Residence Association - Slidell, LA
Louisiana Association of Chamber of Commerce Executives, Baton Rouge, LA
Louisiana Bankers Association
Louisiana Parishes Against Coastal Erosion
Louisiana REALTORS®
Minot Area Chamber of Commerce - Minot, ND
Muncy Bank and Trust Company - Muncy, PA
New Jersey Bankers Association
New Jersey State Chamber of Commerce
New Orleans Chamber of Commerce - New Orleans, LA
New Orleans Area Habitat for Humanity - New Orleans, LA
The New Orleans Metropolitan Association of REALTORS® - Metairie, LA
Northshore Business Council  - Mandeville, LA
Plaquemines Association of Business and Industry - Belle Chase, LA
Red Hook Civic Association - Brooklyn, NY
RSA Insurance - Mobile, AL
South Central Industrial Association - Houma, LA
South Lafourche Levee District - Galliano, LA
South Louisiana Bank
Splashy Ventures - Gulfport, FL
St. Bernard Chamber of Commerce - Chalmette, LA
St. Bernard Economic Development Foundation – Chalmette, LA
St. Charles Parish President V.J. St. Pierre, Jr.,
St. John the Baptist Parish President Natalie Robottom
St. Mary Levee District - Morgan City, LA
St. Mary Parish President Paul P. Naquin, Jr.,
St. Petersburg Area Chamber of Commerce - St. Petersburg, FL
St. Tammany Home Builders Association - Lacombe, LA
St. Tammany Parish President Pat Brister
Sullivan Garrity and Donnelly Insurance Agencies Inc. - Worcester, MA
Waveland, MS Mayor David A. Garcia
Wrightsville Beach Chamber of Commerce - Wrightsville Beach, NC


Caitlin S. Berni
Director of External Affairs




Greater New Orleans, Inc.
365 Canal Street, Suite 2300
New Orleans, Louisiana 70130
O:504.527.6980
F:504.527.6970
cberni@gnoinc.org
www.gnoinc.org
@gnoinc

Guest


Guest

The NFIP is in trouble because of inappropriate behaviour after Katrina.  The GD Congress authorized the NFIP to pay claims of victims WHO DIDNT HAVE NFIP COVERAGE.

othershoe1030

othershoe1030

colaguy wrote:The NFIP is in trouble because of inappropriate behaviour after Katrina.  The GD Congress authorized the NFIP to pay claims of victims WHO DIDNT HAVE NFIP COVERAGE.

Interesting. Do you have details? How did that happen? Sounds like we need another dose of individual mandate for flood insurance this time.

I think maybe the NFIP is in trouble over more than Katrina though. There were a lot of floods between Katrina and 2012.

dumpcare



http://www.bizjournals.com/tampabay/blog/morning-edition/2014/03/us-house-passes-flood-insurance-bill.html

knothead

knothead

I was watching a debate on the House floor just last week on this bill, they were offering an amendment that seemed to attract bipartisan support to provide relief to properties built to code (off grade and elevated) and grandfather some but do not know if it passed or other details.

Duh, failed to read the above link, sorry for the oversight. My bad . . .

Guest


Guest

As per usual the GD Congress has kicked the can down the road, rather than addressing the problem.  

The Homeowner Flood Insurance Affordability Act of 2014 reverses flood insurance reforms and curb flood insurance premium increases. It prevents FEMA from raising the average rates for a class of properties above 15% and from raising rates on individual policies above 18% per year for virtually all properties.

polecat

polecat

Here's an idea don't build houses in flood plains.

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