Flood insurance rates could increase in Bayville

Households in Bayville could see increased flood insurance premiums on policies that renew after April 1, due to the National Flood Insurance Program’s new system for setting prices.

The new rating methodology, called Risk Rating 2.0: Equity in Action, ensures “flood insurance rates are actuarily sound, equitable, easier to understand and better reflect an individual property’s flood risk,” according to a release from the Federal Emergency Management Agency. For new policies, this rating system has already been in use since last October 1.

Risk Rating 2.0 compares rate changes with the legacy rating system that has been in place since the 1970s. The comparison data debunks a huge myth held by many critics of the new methodology that under the old system, flood insurance rates were not subject to regular annual increases, David Maurstad, the senior executive of the National Flood Insurance Program said in FEMA’s release. “The truth is rates have gone up every year for all policyholders and will continue to do so if no action is taken.

“The side-by-side comparisons show some policyholders now will experience decreases under year one of Risk Rating 2.0 while a majority of remaining policyholders will see premium increases mostly on par with what they already pay,” Maurstad added of the change.

FEMA said part of the changes now considers the cost to rebuild, an aspect that ensures “equitable” rates for all policyholders.

Not all Bayville residents agree that the new rating methodology will be equitable or necessary, however. Former Bayville mayor Doug Watson expressed skepticism that the premium increase was needed so soon after the Covid pandemic.

“We have things we’ve gotta take care of right now, not worry about whether the ocean’s going to rise an inch in 2050,” Watson said. “We can’t focus on a doom and gloom that may happen in the future.”

According to Redfin, a full-service real estate brokerage that details market trends, approximately 1,184 homes in Bayville are at risk for flooding. Within 30 years an estimated further 258 homes will be at risk. This would put 53 percent of the village in danger of flooding, with homes along the Boulevard and Shore Road most likely to be affected.

Many people in Bayville have experienced the damaging effects of flooding, caused largely by super storms and hurricanes.

“As long as Bayville’s been standing there’s been flooding in the area,” Dave Rapelje, director of the Bayville Historical Museum, said. “But now many more people live here than in the previous centuries, so when a hurricane like the one in ’38 hits Bayville, it causes far more damage.”

High Risk areas for flooding, as defined by FEMA, are areas with a 1 percent annual chance of flooding and 26 percent chance of flooding over a 30-year mortgage. In Bayville — a community that saw widespread damage during Superstorm Sandy in 2012 — the base floodplain where flood elevations are provided are also considered when determining risk.

On FEMA’s website, a Flood Insurance Rate Map can help determine risk by location. At Mike Walsh’s State Farm Insurance office in Bellmore, Chris Bauer, the agency’s flood specialist, showed the Herald how FEMA’s mapping system works. Entering an exact address into the mapping service, FEMA takes things such as location from the shoreline and elevation into account, thus determining the risk for flooding. Maps are drawn based on where there were losses and damage due to floods.

Insurance companies like State Farm cannot write National Flood Insurance policies — they must be written through FEMA. With that said, an agency’s licensing can allow for employees within that agency to write a flood policy through FEMA, using the mapping system as a tool to determine risk.

Flood insurance policies through FEMA require the first year’s premium be paid in full. After that, Bauer added, customers can opt to have flood and home insurance monthly premiums built into a mortgage payment. For example, if home insurance costs $120 a month, flood insurance costs $200 a month, and a mortgage is $3,000 a month, those three amounts would be lumped together into one monthly payment.

Risk Rating 2.0 State Profiles can be found on FEMA’s website, fema.gov, along with additional information that further details the new system. Downloadable Excel sheets are provided, and a breakdown of state by zip code, so homeowners can see what to expect.

According to FEMA, potential and existing National Flood Insurance policyholders should contact their insurance company or agency to learn about their specific rates, and if the changes will affect their policy.

Will Sheeline contributed to this story.