2012 Law Could Send N.C. Flood Insurance Premiums Soaring
|By Jeff Hampton, The Virginian-Pilot|
|McClatchy-Tribune Information Services|
"We see where this is going to be self-defeating," said
Higher insurance premiums could ward off buyers and cause lenders to turn down loans, Kelly said. Even homes built to today's standards could fall under new flood zones and be hit with large rate increases, she said.
Her association plans to meet Friday in
The law could bring about higher rates for all homes in flood zones. Also, more buildings could be included in expanded flood zones when new maps come out in 2014, Kelly said.
The law already is affecting the
The original elevation certificate was found, and the lender agreed to grandfather the home in a less expensive "A" zone, she said. Eventually, under Biggert-Waters, property owners will have to get "V" zone insurance, Sample said.
"This is a prime example that the people in
In some cases, flood insurance rates could reach
The flood insurance program offers big discounts for properties built high above what is known as the base flood elevation, determined by the flood zone, said
"Flood design is really simple," he said. "Don't get wet."
At the time, private insurers generally were not willing to offer risky flood insurance policies. The federal government set up the program offering discounts to existing properties to get more owners to participate, according to the report. It was mandated to be available and affordable. Later, to further increase participation, anyone in a flood zone with a mortgage had to get flood insurance.
The program worked well until 2005, when large storms, including
With the Biggert-Waters Act,
The NFIP did not charge full rates based on the risk and did not account for properties repeatedly flooded where owners made multiple claims, Kelly said.
The meeting on amending the flood insurance law will be at
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