Urgent Issue Regarding National Flood Insurance Rates

Urgent issue regarding Flood Insurance Rates and Real Estate Values

Dear Neighbors….Property Owners living in or near flood zones,

            This is to inform you about significant changes in the National Flood Insurance Program that will have grave economic consequences to all of us with property on or near any flood-able stream, creek, river, bay, sound or ocean etc. in the United States. This is an issue of national scope. .

 There is an important action that each of you (husbands, wives, adult children) need to take to protect your financial assets including your real estate. It is important to send a short email to our North Carolina Congressional Representatives (Senators Burr and Hagan, Congressman McIntyre), seeking their support to delay implementation of the Biggert Waters Flood Insurance Reform Act 2012.

I will briefly outline the history, consequences and the simple action steps that you should take.

History- In July 2012 the President signed a Transportation Bill (HR 4348) tucked quietly into the pages of that bill is a section known as Biggert Waters. This sub-section was virtually unread by our representatives prior to approval and is only now (over 12 months later) being put under the light of scrutiny, regarding the implications that will effect our homes across the nation..

Biggert Waters – This Bill was driven by the massive financial loses in the National Flood Insurance Program experienced from Hurricanes Katrina and Super Storm Sandy. The goal is to make the program financially solvent by immediately canceling or reducing subsidies of the flood insurance premium rates. Rates will immediately jump to be on full risk premium basis for business properties, non-primary residence or upon sale of a home. Primary Residence currently insured will have a 20% jump each year until the full risk premium is reached (estimated to take 4 -5 years).

Consequences – While the goal of financial solvency is noble the implementation, which begins this coming October, will have significant consequences...our insurance premiums will jump. The amount of increase, will vary with the location of your home to the water, the amount of open water your home faces (susceptibility to wave action), the elevation above sea level and the height of your first floor.

Estimates are that some rates could be in the range of $10,000 to 30,000 per year.

This will have, not only a direct impact on our pocket books but also effect real estate values until this turmoil stabilizes in perhaps 5+ years.

Clearly the consequences of this Bill were never understood and now time is of the essence to take action. Only Congress can stop of delay this situation.

Further Biggert Waters Information- On the Town of Wrightsville Beach website TOWB.ORG at the lower right corner (homepage) you can find some presentation materials that show some examples of rate estimates and specific houses here in Wrightsville.

Actions: Please send an email to our Federal Representatives requesting a delay in the implementation of Biggert Waters until the economic implications are more clearly understood.

Congressman McIntyre - Andrew.Simpson@mail.house.gov
Senator Hagan - andrew_devlin@hagan.senate.gov
Senator Burr - matthew_dockham@Burr.senate.gov

*****Sample Text for email****: follows

Dear Senator (Burr) :

I am writing to ask for your help in mitigating the negative economic impacts The Biggert-Waters amendment (National Flood Insurance Program) to the 2012 Surface Transportation Bill will cause in my town.

By removing grandfathering provisions for existing policy holders who built their homes according to the State Building Codes in effect at the time of construction the amendment needlessly penalizes our citizens for following the law.  Furthermore by lowering the substantial improvement threshold from the historical limit of 50% to 30% those who try to meet current standards are also penalized.

All businesses are excluded from the program and even pre-FIRM, primary dwellings are not exempt from the effects of this bill.  It still allows base rates for risk classes to increase up to 20% per year.  If new flood risk maps change the risk class of a dwelling this increase would be further exacerbated.

This legislation would have a negative effect on land values, businesses, home prices and construction.

I urge you to support legislation to retain the Flood Insurance Program but to at least delay implementing the Biggert-Waters provisions until a thorough evaluation of the economic effects of its impact can be evaluated and to further modify its requirements to reduce these negative effects.

Yours truly,

John Q. Public

XX North Lumina Street,, Wrightsville Beach, NC

Thanks for reading and taking action on this matter, our personal resources and our community’s real estate value is at stake.

And a special thanks to Wrightsville Beach Alderman Bill Sisson who has been an important leader in this effort across the Town of Wrightsville Beach and across New Hanover County.

Respectfully,

Noah Bridges