RSS 2.0 FeedSeptember 23, 2010, Merrick Life
SMCCA hosts FEMA reps
Residents in the newly declared flood-zones face confusion and higher insurance costs.
Recent reconfiguration of flood maps by the Federal Emergency Management Agency (FEMA) has led to skyrocketing insurance costs and much confusion and angst for homeowners. [See Merrick Life, September 2.] In response to the concerns of Merrick residents, the South Merrick Community Civic Association contacted Congressman Peter King to find answers.
The congressman requested that representatives from FEMA address members of SMCCA. On September 14, FEMA representatives Paul Weberg and Mary Colvin provided much useful information to Merrick residents. As part of the team of flood plain management in New York, New Jersey, the Virgin Islands and Puerto Rico, Ms. Colvin said that FEMA was asked to revise flood maps, some of which dated back to the 1980s.
Mr. Weberg gave a brief history of some of the devasting flooding events that have impacted the area. The 1938 hurricane, dubbed the Long Island Express, was one of the prime examples of weather events. In more recent history, the “Nor’easter of 1992” wreaked havoc on Long Island. With an eye toward elevation levels, the new digital maps created by FEMA resulted in many homes being placed in the higher-risk zone. New surge modeling techniques allow for site-specific evaluations, said Ms. Colvin.
In addition, “improvements in both the engineering and mapping technologies” have increased the accuracy of flood zoning maps. Homeowners who have never had a flood and were never in the high risk zone were suddenly reclassified resulting in higher insurance premiums. For some the insurance rates rose from $343 (for homes without a basement) for $200,000 worth of building coverage and $80,000.00 worth of content coverage to more than $1,400.
Ms. Colvin said that most lenders require flood insurance if the homes are in risky areas. There is a two-year window in which homeowners can prepare for lower rates. Beginning January 1, those in a high-risk flood zone will be “eligible to receive up to two policy years of reduced premiums.” Labeled a “PRP” (preferred rate premium), the reduced rate can result in substantial savings.
Ms. Colvin noted there are other ways to save on the insurance costs. Homeowners need to speak to their insurance agents and make their needs known. “You need to identify what coverage you want,” said Ms. Colvin. Lenders only require that the building be insured, not the contents of a home. Eliminating the cost for insuring contents can save homeowners in premium costs. When a resident complained that her bank was requiring payment in full of the entire flood insurance premium, Ms. Colvin replied that banks should be escrowing the premium payments if they escrow tax payments.
A benefit to obtaining the PRP insurance rate is that “if you sell your house, the coverage goes with it,” said Ms. Colvin. If you do not have the flood insurance, then the prospective owner would need to consider future higher insurance rates. At the end of the two year eligibility period, rates will return to standard X-zone rates. While that may mean an increase in premiums, the rate will not be as high as what some homeowners are now experiencing.
Many audience members wanted to know what can be done to avoid paying the higher premiums. Residents were urged to contact their senators and members of Congress to achieve changes. Ms. Colvin advised that FEMA is working on recommendations to improve insurance coverage.
Can homeowners fight the rezoning of their property?
Ms. Colvin said that it is possible and urged residents to visit www.FloodSmart.gov/PRPExtension. In some cases, a survey indicating land elevations would be necessary to prove that a home does not lie within a flood zone. Joe Baker, president of SMCCA, thanked the FEMA representatives for their presentation and expressed gratitude to Congressman King for providing the presentation for Merrick residents.
