Will the Biggert-Waters Reform Act cause flood insurance rates to increase?

Flood Agent_RSMore than 80 percent of policyholders (representing approximately 4.48 million of the 5.6 million policies in force) do not pay subsidized rates.

About 20 percent of all NFIP policies pay subsidized rates. Only a portion of those policies that are currently paying subsidized premiums will see larger premium increases of 25% annually starting this year, until their premiums are full-risk premiums. Five percent of policyholders – those with subsidized policies for non-primary residences, businesses, and severe repetitive loss properties – will see the 25% annual increases immediately. . Subsidies will no longer be offered for policies covering newly purchased properties, lapsed policies, or new policies covering properties for the first time.

The 80% of all NFIP policies that already pay full-risk premiums will not see these large premium increases. Most policyholders will see a new charge on their premiums to cover the Reserve Fund assessment that is mandated by BW-12. Initially, there will be a 5% assessment to all policies except Preferred Risk Policies (PRPs). The Reserve Fund will increase over time and will also be assessed on PRPs at some undetermined future date.

Additional changes to premium rates will occur upon remapping, the provision calling for these premium rate changes will not be implemented until the latter half of 2014.   Click if you want to read more about the Biggert-Waters Reform Act of 2012.  If your home or business has been flooded Build Back Safer and Stronger.  Click here if you are rebuilding in an AE Zone.  Click here if you are rebuilding in a VE Zone.  Click here if you need more information about the different Flood Hazard Zones.

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What will the Biggert-Waters Reform Act do to flood insurance operations?

Flood Agent_RSMany of the proposed changes are designed to increase the fiscal soundness of the NFIP. For example, beginning this year there will be changes addressing rate subsidies and a new Reserve Fund charge will start being assessed. There are also provisions to adjust premium rates to more accurately reflect flood risk.

Other provisions of the law address coverage modifications and claims handling. Studies will be conducted to address issues of affordability, privatization, and reinsurance, among other topics.   Click if you want to read more about the Biggert-Waters Reform Act of 2012.  If your home or business has been flooded Build Back Safer and Stronger.  Click here if you are rebuilding in an AE Zone.  Click here if you are rebuilding in a VE Zone.  Click here if you need more information about the different Flood Hazard Zones.

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Why was the Biggert-Waters Reform Act of 2012 passed?

Flood_InspectorFlooding has been, and continues to be, a serious risk in the United States—so serious that most insurance companies have specifically excluded flood damage from homeowners insurance. To address the need, in 1968 the U.S. Congress established the NFIP as a Federal program. It enabled property owners in participating communities to purchase flood insurance if the community adopted floodplain management ordinances and minimum standards for new construction. However, owners of existing homes and businesses did not have to rebuild to the higher standards, and many received subsidized rates that did not reflect their true risk.

Over the years, the costs and consequences of flooding have continued to increase. For the NFIP to remain sustainable, its premium structure must reflect the true risks and costs of flooding. This is a primary driver for many of the changes required under the law.   Click if you want to read more about the Biggert-Waters Reform Act of 2012.  If your home or business has been flooded Build Back Safer and Stronger.  Click here if you are rebuilding in an AE Zone.  Click here if you are rebuilding in a VE Zone.  Click here if you need more information about the different Flood Hazard Zones.

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Sunvent Industries Attacks Flood Vent Engineers!

Lori Joseph, the president of Sunvent Industries, reported a Florida flood vent engineer to the Florida Board of Professional Engineers.  This is not the only flood vent engineer that Lori Joseph reported to their professional board, there were seven (7) others.  I will report on them later.  She claims the Florida engineer incorrectly calculated the Net-Free air of Crawl Space Door System’s engineered flood vents.  Sunvent Industries’ website shows that Sunvent sells air vents and not flood vents.  I am not sure why Lori Joseph feels the need to attack Crawl Space Door system’s flood vent engineers.

Letter from Lori Joseph to the Florida Board of Professional Engineers.  Letter from the Florida Board of Professional Engineers to the Florida flood vent engineer.  The DISMISSAL letter from the Florida Board of Professional Engineers to the Florida Engineer.

Anyway the good News is that all of the flood vent engineers that Lori Joseph reported to their Professional Boards, their cases were dismissed just like the Florida flood vent engineer’s case was dismissed.

Smart Vent, a flood vent company, is also trying to police the flood vent industry by  filing lawsuits against four (4) other flood vent companies.  Here are copies of the different lawsuits.  Smart Vent vs. AAA Louvers and Millworks, Inc., Smart Vent, Inc. vs. USA Floodair Vents, LTD., Smart Vent, Inc. vs. Vinylast, Inc. and Smart Vent, Inc. vs. Crawl Space Door Systems, Inc.

 

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What is the Biggert-Waters Flood Insurance Reform Act of 2012?

Flood_InspectorThe Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) is a law passed by Congress and signed by the President in 2012 that extends the National Flood nsurance
Program (NFIP) for five years, while requiring significant program reform. The law requires changes to all major components of the program, including flood insurance, flood hazard  mapping, grants, and the management of loodplains. Many of the changes are designed to make the NFIP more financially stable, and ensure that flood insurance rates more accurately reflect the real risk of flooding. The changes will be phased in over time, beginning this year.

Over the years, the costs and consequences of flooding have continued to increase. For the NFIP to remain sustainable, its premium structure must reflect the true risks and costs of flooding. This is a primary driver for many of the changes required under the law.   Click if you want to read more about the Biggert-Waters Reform Act of 2012.  If your home or business has been flooded Build Back Safer and Stronger.  Click here if you are rebuilding in an AE Zone.  Click here if you are rebuilding in a VE Zone.  Click here if you need more information about the different Flood Hazard Zones.

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Will people be forced into foreclosure by the new flood Insurance Law?

Flood_PhotoNorth Carolina, Outer Banks real estate agents and home owners are worried the new Biggert-Waters Flood Insurance Reform Act of 2012 could hike home flood insurnace premiums by thousands of dollars.  Higher insurance premiums could ward off buyers and cause lenders to turn down loans.  Possibly in some cases, flood insurance rates could reach $30,000 a year for buildings in low-lying areas.  Jeff Hampton with The Virginia-Pilot wrote a very good article (VIEW ARTICLE) about these concerns.  If you are interest I have attached a document (VIEW DOCUMENT) that summarizes the contents of the Biggert-Waters Flood Insurance Reform Act of 2012.

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Smart Vent, Inc., a Flood Vent Company, Likes NJ’s Federal Court!

Smart Vent filed lawsuits against four different flood vent companies in New Jersey’s Federal Court.  Smart Vent, Inc. specializes in engineered flood vents.  The four different defendants also sell flood vents.  Here is a copy of the first page of each of the different lawsuits.  Smart Vent vs. AAA Louvers and Millworks, Inc., Smart Vent, Inc. vs. USA Floodair Vents, LTD., Smart Vent, Inc. vs. Vinylast, Inc. and Smart Vent, Inc. vs. Crawl Space Door Systems, Inc.  If you are interested in reading more about the lawsuits instead of just the first page, please send me an email and I will be happy to send you a copy of the complete lawsuits. billy@crawlspacedoors.com.

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What is a FEMA Compliant Engineered Flood Vent?

16x32 Flood VentEngineer openings have a characteristic that differ from non-engineered openings. They are designed and certified by a registered design professional as meeting certain performance characteristics described in FEMA TB 1 / August 2008. Engineered openings may be equipped with screens, louvers, valves, or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. The advantage of an engineered flood vent compared to a non-engineered vent is it takes fewer engineered flood vents to meet NFIP’s requirements.

 

 

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What is the purpose on an Elevation Certificate (EC) ?

CSD logo straight_Web Size2The purpose of an Elevation Certification is to provide structure elevation information. This information is used for compliance with community floodplain ordinance, determine proper insurance premium, helps in support of a LOMA (Letter of Map Amendment)  or LOMA – F (Letter of Map Amendment – Fill) application. Also, an elevation certificate will help rate Post-Firm buildings flood insurance premium.

 

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Maryland and Delaware Engineered Flood Vent Certifications!

Flood_Photo_rs2We now have Maryland and Delaware engineered flood vent certifications. Maryland Flood Vent Certification & Delaware Engineered Flood Vent Certification.  Please give us a call if you have any questions about flood vents or FEMA’s flood vent requirements.  Chris, our Floodplain Manager (CFM) is happy to help you.  His direct line is 757-274-9989 or email is chris@crawlspacedoors.com.

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