Flood insurance question from a reader

Submitted by James on Fri, 04/01/2011 - 3:31pm

Is there anything that can be done about the new flood insurance rates? Mine jumped from $388.00 a year to $1393.00 a year. To me and my family, $1393 is a lot of money, and it cannot be broken into payments.

I can understand a reevaluation of the flood plains, but the rate hike should have been considered on an individual basis. Also, is it a coincidence our flood insurance rates have sky rocketed after all of the flooding that has gone on all over the country in the past few years?

Share on Facebook

Flood insurance

Submitted by gregflynn on Fri, 04/01/2011 - 4:57pm.

There are multiple factors. The rate increase could be the result of changing floods maps described in this reference guide. It has the following advice:

NFIP Grandfather rules recognize policyholders who have built in compliance with the FIRM and/or remained loyal customers of the NFIP by maintaining continuous coverage.
The Grandfather rules may make a big difference in your annual flood insurance premiums, if applied properly. They are particularly important when your flood maps are changed. At your option,the agent can use the Grandfather rules if they offer you lower rates. You will need to provide the agent with all necessary information about your home’s construction. Always ask your flood insurance agent to look for the lowest available rating options.

More info for persons inquiring about flood insurance ...

Submitted by Wayne Goodwin on Fri, 04/01/2011 - 8:28pm.

In addition to the helpful info provided @gregflynn above:

Flood insurance is offered by the National Flood Insurance Program (NFIP). Quite regularly Congress lets the program lapse, or come quite close to lapsing, before renewing it for another short period of time. Due in large part to the numbers of catastrophes involving flood around the country and its underfunding by Congress, the NFIP has been in the red. It's also important to know that flood insurance (NFIP) is NOT regulated by the NC Department of Insurance; flood insurance rates are NOT set by either the Department or the Commissioner of Insurance in the various States.

For the Top Ten Facts About Flood Insurance, go to this link here provided by the NC Department of Insurance.

For specific consumer questions about your property or policy, please call Deputy Commissioner Bob Lisson, NCDOI Consumer Services Division, at 800-546-5664 or 919-733-3058, or email him at bob.lisson@ncdoi.gov ....

You may also want to contact one of North Carolina's expert representatives on the subject of flood insurance, Fletcher Willey of Manteo. He has served as Chairman of the National Flood Insurance Producers National Committee, an organization which advises the Federal Emergency Management Agency on issues affecting the National Flood Insurance Program. His email address is fletcher@willeyagency.com.

Thank you for your question. ... With my toddler tugging on my arm, I will have to delve into further specifics later! I'm sure folks with kids and grandkids understand ...

Wayne Goodwin
NC Insurance Commissioner
www.ncdoi.com

Thanks a lot, Wayne

Submitted by scharrison on Fri, 04/01/2011 - 9:30pm.

Trying to help people at 8:30 on a Friday night (not to mention being toddlered) has got to be one of the top five coolest things I've seen from a public servant.