Category Archive: Flood Insurance

In an earlier blog post, we discussed implementation of the Biggert-Waters Act and how it may increase flood insurance premiums. (As you’ll recall, the Biggert-Waters Flood Insurance Reform Act instructed FEMA to phase out subsidies and discounts so that premiums more accurately reflect a property’s true risk.)

As the Act takes effect, however, a growing number of politicians and homeowners are seeking to delay its implementation, especially as some insurance rate increases have been larger than expected.

Indeed, even Rep. Maxine Waters, who co-authored the bill, is seeking to have the premium increases delayed. In addition, some states have filed lawsuits against the federal government in an attempt to stall rate hikes. Other states are encouraging private insurers to offer alternatives to federal flood insurance coverage.

It remains to be seen how all this will shake out. But regardless of what happens with Biggert-Waters, it remains true that most insurers will offer a flood insurance premium discount for proper flood vent installation.

At Flood Solutions, our FEMA compliant flood vents come in a variety of models and sizes for both new construction and retrofits. For more information about our flood vents, contact us.

On July 6, 2012, the Biggert-Waters Flood Insurance Reform Act came into effect. The purpose of the law is to bring the National Flood Insurance Program out of its financial deficit by phasing out subsidies and updating flood zone maps. If you’ve seen an increase in your flood insurance rate this year, this law might be the reason why.

Rates for subsidized non-primary residences increased 25 percent on January 1^st of this year. Increases for additional categories of subsidized properties will continue through 2013. Starting in 2014, premium rates for non-subsidized properties may also increase as new or revised flood insurance rate maps come into effect.

While no one enjoys paying for flood insurance, your mortgage lender may require it and, in many cases, it’s just the right thing to do. So what can you do to lower your premiums? Premiums are based on an assessment of your home’s flood risk; if you can reduce your risk, you might get a break on premiums.

Big-ticket upgrades, such as relocating your home or raising it above minimum elevation standards, can lower your flood insurance rates. If you’re not prepared to make that kind of investment, you can still make less pricey upgrades to reduce your premiums, such as adding flood vents to enclosures.

At Flood Solutions, we manufacturer FEMA compliant flood vents for homes and commercial properties. Our flood vents are priced from $52.00 to $119.00, making them an affordable way to mitigate flood damage and reduce your flood insurance costs. For more information about our flood vents, contact us.

With insurance rates rising, most policyholders are looking for ways to reduce their premiums. One possible way to decrease your flood insurance premiums is through the National Flood Insurance Program’s (NFIP) Community Rating System (CRS).

The CRS is a voluntary program that rewards communities that exceed the NFIP’s minimum standards of floodplain management. Communities accumulate CRS credits through proactive flood related activities to receive discounted flood insurance rates. Depending on the number of credits accumulated, policyholders can receive a reduction of 5% to 45% in their premiums.

To participate, communities have to be fully compliant with NFIP’s minimum floodplain management requirements. They also have to appoint a CRS coordinator and submit an application form. For more information about the program, download the CRS Coordinator’s manual.

Today, over 20,000 communities participate in the program. A recent FEMA blog post revealed how policyholders in one community, Altoona, PA, receive a 10% discount on their annual premiums (an average of $77.00 each) for their efforts.

More than likely, your community is already doing things that would earn CRS program credits. For example, conducting periodic inspections of drainage system channels, keeping computer records of flood and property data and regulating new construction to minimize soil erosion, all count towards the CRS program. Getting a discount may be largely a matter of collecting and submitting the required paperwork.

The CRS program also awards credits for activities related to flood damage reduction. Because flood vents are a proven way to mitigate flood damage to your home, installing flood vents may help your community gain CRS credits. In fact, aside from the CRS program, many insurance providers give discounted rates to homeowners with FEMA compliant flood vents. To learn more about our heavy-duty flood vents, contact us.

FEMA is in the process of updating the nation’s flood maps. They use statistical data on river levels, rainfall and other factors to assess flood risk and then communicate these findings through flood hazard maps. These maps largely determine how much you’ll pay in flood insurance premiums. If your area’s assessment changes from low to high risk, your premiums will likely go up.

There is a way to avoid this premium increase, at least for a while. As described in a National Flood Insurance Program fact sheet, property owners can grandfather their existing flood insurance policy if they renew and maintain coverage before the new maps are released. Grandfathering is also available to property owners who built their homes in compliance with the flood map in effect at time of construction. Keep in mind, though, if your risk assessment level decreases, your new premium could go down, not up. Consult with your insurance agent to determine the best strategy for you and your home.

In the meantime, to keep up to date on FEMA’s flood map changes, check out “What’s New in Flood Hazard Mapping.” You can also sign up for FEMA email updates.

And while you’re looking for ways to lower your flood insurance premiums, ask your insurance agent about premium reductions for flood vents. Flood vents often qualify you for a lower rate.

All our Flood Solutions flood vents are FEMA compliant and made of heavy-duty construction. They’re guaranteed not to rust or rot. For more information, contact us.

Senators and House representatives are deciding the future of the National Flood Insurance Program (NFIP).

The National Flood Insurance Program is a voluntary program administered by FEMA with over 20,000 communities participating across the U.S. With the objective of reducing the cost of flood damages, participating communities take proscribed steps to reduce possible flood damage and, in return, they get access to federally backed flood insurance. In addition to flood insurance, the NFIP program also covers flood plain management and flood hazard mapping.

The program is not without its critics. It’s currently $18 billion dollars in debt, thanks in large part to claims resulting from Hurricane Katrina in 2005. There have also been numerous complaints about delays in getting claims filled and program inconsistencies.

The NFIP is set to expire December 16, 2011, and it is unlikely Washington will reach agreement on a long-term extension before the program expiry date. As a stop-gap measure, Senators recently agreed to extend the program to May 31, 2012. The bill now goes to the House for review. To check the current status of the bill, S.1958, follow it on the Library of Congress website.

If your community participates in the NFIP program, be sure to subscribe to NFIP email updates. Submit your email address, and you’ll get the latest NFIP news direct to your inbox.

Regardless of the future of the NFIP, it always makes sense to take steps to minimize damage to your home should a flood occur. Our Flood Solutions FEMA compliant flood vents are a proven way to help maintain the structural integrity of your home should flood waters rise. Give us a call at 800-325-9775 or send us a message via our contact page.