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I know this has a lot of people scared and unsure. Heck, I'm one of them. It seems to me that the folks in the pre-FIRM homes are the ones that are going to get the biggest sticker shock. While it appears that every one is going to see some kind of increase, if your home is on pilings at least you're ahead of the game.
I'm not so sure that some of the older houses (many which are in family trusts or family LLCs that got passed down) won't be better off just dropping insurance and self-insuring, as they say. Most of those homes are owned free and clear so they have the option.
By the way, you'll notice the term "elevation certificate" in a lot of the articles, and you may be asked for one by your insurance company. The certificate is something separate from the survey and isn't a borrowing requirement by a mortgage company. If the home is newer there is likely one on file as I believe it is a more recent permitting construction requirement, but if your home is older there may not be one on file. In my case there wasn't one and I did one as part of my due diligence before I purchased my home. It was an extra $1,000 in cost but it appears to now be something that FEMA is requiring as part of giving a flood quote. Lots of people are going to be thrown for a loop on that requirement.
I almost have to laugh at the tone of the article. It's so typical. So because you have lived in a house that is obsolete for a long time apparently you are entitled to still be able to receive subsidies or find a buyer to receive subsidies. Its not the governments fault and its not the governments responsibility...its the owners. Its funny because many folks want it both ways, they don't want govt interference in their lives and then they want a bailout.
The issue is the redevelopment of the floodplain. There are A LOT of houses IN COMPLIANCE at places like Wrightsville Beach that will have reasonable flood insurance rates. Its no different than a 1980's kitchen being remodeled to today's standard. If you want to sell, remodeling your kitchen may be necessary.
Elevation Certificates should NOT be $1000, most are no more than $500. Shop around. An affected owner should get one and make whatever improvements they should make to come into compliance or at least get closer. If you have a 20 year old HVAC system below the Base Flood Elevation (BFE), its time to replace it and put it above. Same thing with a water heater. Or if you are on in a tear down area, go ahead and tear it down.
The people this is affecting the most are the folks that unwisely have been making significant improvements to the downstairs of their houses (many without proper permits). The bottom area is for parking or storage. That's it. No kitchens, no bathrooms, bedrooms, all mechanical, electrical, plumbing above BFE. No apartments. It really fairly simple, but lots of folks pretend its complicated. I do agree that many folks that own their homes outright will just cancel their insurance and take the extra risk.
There is ICC (increased cost of compliance) money available through flood insurance and there are State programs available to mitigate. Call your municipality to apply and it may not cost you too much.
Issue is a house that never flooded in 100 years and never had a claim in 100 years can be deamed below BFE and get huge rate hikes.
Folks with grandfathered pre-firm (flood insurance rate maps) houses as soon as a single storm causes 50% damage to home (house only, no land) or lifetime claims equal 100% of value of home they loose this lower insurance and insurance shoots to moon.
Between Katrina, Lee, Irene and Sandy many many older homes got knocked out of cheap flood insurance anyhow.
Just got the following from State Senator Harry Brown
As I mentioned in my December newsletter, my office was informed that the North Carolina Rate Bureau (Rate Bureau) may file for a homeowners insurance rate increase this month. Late Friday afternoon, the Rate Bureau did file for a statewide average rate increase of 25.3 percent with the North Carolina Department of Insurance (Department). If approved by the Department, new rates would be effective August 1, 2014.
The Department will now review the filing to determine if any rate adjustments are necessary. If the Department and Rate Bureau do not agree on the proposed rate changes, the Insurance Commissioner has the option to call for a public hearing that will allow each entity to present their case for or against the changes.
If you wish to voice your concerns about the proposed rate changes, there will be a public comment session held in Raleigh on Friday, January 24 from 9:30 AM to 4:00 PM in the Jim Long Hearing Room of the Dobbs Building at 430 N. Salisbury Street.
The Department will also accept written public comments through Friday, January 31. Written comments should be mailed to: NCDOI, Attention: Bob Mack, Property and Casualty Division, 1201 Mail Service Center, Raleigh, NC 27699-1201; or emailed to: 2014homeowners@ncdoi.gov.
It is important that your voice be heard on this issue. Please plan to be there for the public comment session or send in a written comment regarding this important issue.
Just got the following from State Senator Harry Brown
As I mentioned in my December newsletter, my office was informed that the North Carolina Rate Bureau (Rate Bureau) may file for a homeowners insurance rate increase this month. Late Friday afternoon, the Rate Bureau did file for a statewide average rate increase of 25.3 percent with the North Carolina Department of Insurance (Department). If approved by the Department, new rates would be effective August 1, 2014.
The Department will now review the filing to determine if any rate adjustments are necessary. If the Department and Rate Bureau do not agree on the proposed rate changes, the Insurance Commissioner has the option to call for a public hearing that will allow each entity to present their case for or against the changes.
If you wish to voice your concerns about the proposed rate changes, there will be a public comment session held in Raleigh on Friday, January 24 from 9:30 AM to 4:00 PM in the Jim Long Hearing Room of the Dobbs Building at 430 N. Salisbury Street.
The Department will also accept written public comments through Friday, January 31. Written comments should be mailed to: NCDOI, Attention: Bob Mack, Property and Casualty Division, 1201 Mail Service Center, Raleigh, NC 27699-1201; or emailed to: 2014homeowners@ncdoi.gov.
It is important that your voice be heard on this issue. Please plan to be there for the public comment session or send in a written comment regarding this important issue.
This is talking about normal insurance rates, correct? I don't think its about flood insurance, which is the title of the thread.
Issue is a house that never flooded in 100 years and never had a claim in 100 years can be deamed below BFE and get huge rate hikes.
Folks with grandfathered pre-firm (flood insurance rate maps) houses as soon as a single storm causes 50% damage to home (house only, no land) or lifetime claims equal 100% of value of home they loose this lower insurance and insurance shoots to moon.
Between Katrina, Lee, Irene and Sandy many many older homes got knocked out of cheap flood insurance anyhow.
Again, the way to cheapen your flood insurance is to mitigate your house from potential hazards and raise everything above BFE. It makes no difference whether or not you have filed a claim or ever been flooded.
Construction in the floodplain is different than regular construction. It is evident when you go to a beach community, but its the same thing where you are close to pretty much any body of water or in a low lying area. As I said before its not really that complicated, but people love to complain nowadays and make things personal.
I hope all of the people who are ready to dance on the graves of the rich people at the beach realize that the unintended consequence of these increases will hit others as well. If you've ever driven down the beach you know that the vast majority of the homes are 1) on tall pilings and 2) are vacation rentals. According to my insurance agent, my rates are going up about $3,000. Not the end of the world but also not an insignificant amount of money. My insurance agent told me this week that the $10,000 - $20,000 increase horror stories will impact a very small percentage of homeowners because most homes (at least on Topsail) are on pilings and either at or near BFE.
So what does it mean when investment property and commercial property sees costs increases? It doesn't take a genius to see that those costs get passed onto customers. My renters will pay more and will bear the cost of the increase. These are people from NC, TN, Ohio, etc who visit me every year. It also means that the meal you get on vacation will cost more. And that the seafood trucked to the local Harris Teeter will likely also cost more because that fisherman who caught it probably lives in a small coastal town in the flood plain.
Honestly the cost doesn't concern me since it's easily recouped on the backs of others. I worry about those who live in the flood plain who don't have a lot (think every resident left in Princeville for example) and the home is their primary residence. These people are having their promise from the government broken. Those are the sad stories you'll likely see on 60 Minutes in a year or two.
I worry about those who live in the flood plain who don't have a lot (think every resident left in Princeville for example) and the home is their primary residence. These people are having their promise from the government broken.
oh baloney.. they were promised nothing. nobody is entitled to live subsidized in a high-risk area. they should be happy they got to enjoy these subsidies as long as they did.
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