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NC-20 President Willo Kelly
addresses Dare County
standing-room-only crowd regarding
the future of flood insurance and
the recent homeowners rate hikes
proposed by the NC Rate Bureau.
Watch video and read more… |
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WELCOME TO NC-20
NC-20 is a
partnership of the people, local governments, and businesses of the 20
coastal
(CAMA) counties in North Carolina dedicated to economic
development of the member counties.
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NC-20 MISSION
STATEMENT
To support, defend, and
further the common environmental and sustainable economic
development interests within the 20 coastal counties through
coordinated communication, information sharing, data
collection and monitoring, scientific research, and
proactive interaction with legislation and executive
decisions makers at all levels of government.
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NC 20 Flood
Insurance News
President Obama recently signed into law
H.R. 3370 – Homeowner Flood Insurance
Affordability Act.
The law amends several provisions of the
Biggert-Waters Flood Insurance Reform
Act of 2012 (BW-12) which made major
changes to the rate and premium
structure of the National Flood
Insurance Program.
NC 20, in conjunction with the Outer
Banks Association of Realtors and the
Outer Banks Home Builders, has produced
a video regarding the highlights of H.R.
3370 - Homeowner Flood Insurance
Affordability Act. The video also serves
to clarify confusion regarding second
home policies.
http://youtu.be/7ursb8MX9Pw
Please feel free to share the video link
and information below with your
constituents.
More highlights of H.R. 3370:
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Reinstates grandfathering on ALL
post-FIRM structures – those that
were built to a Flood Insurance Rate
Map standard. This includes all
post-FIRM primary resident
policyholders, second home
policyholders and non-residential
policyholders. A policyholder and
any subsequent owner of property
built in a flood zone will be
allowed to continue to pay to the
flood zone and base flood elevation
in place at time of construction.
The Flood Insurance Rate Map (FIRM)
dates vary by County and Town. This
should make things "business as
usual" for these properties given
the fact that FEMA never implemented
the provision of the Bigger-Waters
Flood Insurance Reform Act of 2012
that removed grandfathering from
these properties.
-
Pre-FIRM Primary Resident
policyholder rates may increase
between 5 and 18% a year.
-
Pre-FIRM Second Homes: Owners of
these properties will continue to
see a 25% annual rate increase until
actuarial risk rates are achieved.
This remains unchanged from BW-12;
however, buyers of these properties
will now be allowed to assume the
flood insurance policy rather than
having to pay the full risk rate at
time of purchase.
-
Pre-FIRM commercial properties and
severe repetitive loss properties
will also continue to see a 25%
annual rate increase until actuarial
risk rates are achieved. This
remains unchanged from BW-12;
however, buyers of these properties
will now be allowed to assume the
flood insurance policy rather than
having to pay the full risk rate at
time of purchase.
-
Lowers the annual average rate
increase cap from 20% to 15%;
however, the individual policy rate
increase is capped at 18%.
-
Allows for residential deductibles
up to and including $10,000.
-
Excludes detached structures that do
not serve as a residence from the
mandatory flood insurance purchase
requirement.
-
Restores the threshold for
substantial improvements from 30%
back to 50% of market value.
-
Requires FEMA to offer monthly
installment payments for premiums.
-
Refunds any premium paid by property
owners after the passage of
Biggert-Waters - July 6, 2012 - that
was in excess of the 18-25% rate
limit increases. This provision may
take up to 18 months to be
implemented by FEMA.
Imposes a $25 annual surcharge on
ALL new or renewed primary
residential policies and a $250
annual surcharge on all
non-residential and second home
policies. Premium surcharges will be
deposited in a Reserve Fund.
With regards to any rate structure
changes needed, such as establishing
new rates for higher deductible,
FEMA has from 8 to 18 months to
implement these provisions. FEMA's
fiscal year is October 1 to
September 30 - therefore annual rate
changes become effective October 1.
For more information, the National
Association of Realtors® has
published an Issue Brief and Section
by Section Summary of the law:
http://www.ksefocus.com/billdatabase/clientfiles/172/4/1983.pdf
Willo Kelly
President, NC 20
Government Affairs
Outer Banks Home Builders
Association
Outer Banks Association of Realtors
ncinsurancehelp@gmail.com
(252) 202-7927
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