Flood Insurance Rates Increasing

The Federal Emergency Management Agency (FEMA) has released revisions to the National Flood Insurance Program effective April 1, 2016, and if you carry Flood Insurance, you can expect some pretty substantial increases in your premiums.

The premium increases will comply with all the limitations introduced by the Homeowner Flood Insurance Affordability Act of 2014.  Those limitations are as follows:

• Premium rates for 4 categories of Pre-FIRM subsidized policies.  Non-primary residential properties, business properties, severe repetitive loss properties and substantially damaged or substantially improved properties, will be increased 25% annually, until they reach full risk rates.
• The average annual premium rate increases for all other risk classes are limited to 15% while the individual premium rate increase for any individual policy is simultaneously limited to an 18% increase.
• The average annual premium rate increase for Pre-FIRM subsidized policies will be at least 5%.

Pre-FIRM is defined as buildings built before the effective date of the first Flood Insurance Rate Map for your community.  Post-FIRM buildings are new construction and those built after the effective date of the first Flood Insurance Rate Map for your community.  In most cases, insurance rates for Post-FIRM buildings are dependent on the elevation of the lowest floor in relation to the base flood elevation, which is why an Elevation Certificate is widely needed.

Most insurance consumers do not realize that having flood insurance is more beneficial to them in a flood disaster than the federal disaster assistance they may receive.  Even if a community is declared a disaster, federal disaster assistance is usually in the form of a loan that must be repaid by the flood victim.

If you have questions, contact your Independent Insurance Agent, who will be more than happy to answer any of your questions on this, or any of your insurance needs.

Kevin Connors is a Certified Insurance Counselor and licensed Property/Casualty and Life Insurance Agent for The Connors Insurance Agency in Mechanicville, NY. Mr. Connors can be reached at (518)664-7307 or This email address is being protected from spambots. You need JavaScript enabled to view it.