Who will be affected, and when?
Current NFIP policy holders with PreFIRM discounts:
- Non-primary residences – 25% annual increase as subsidies are phased-out; began Jan. 1, 2013 at policy’s annual renewal.
- Business properties and previously flood-damaged properties – phase-out of subsidies and 25% annual phase-in of rate increases begins Oct. 1, 2013.
- Primary residences – full standard rates for single-family homes or condo units will be charged with change of ownership or any other issuance of a new policy, effective Oct. 1, 2013.
Buyers/sellers of real estate with PreFIRM discounts:
- Any structure in an A, AE or V zone that uses mortgage financing must have a flood insurance policy, whether issued by the NFIP or a private insurer.
- All policies for new ownership will be written at full-standard rates with no subsidies, effective Oct. 1, 2013.
- NFIP residential policies pay only up to $250,000; market value beyond that must be covered by private flood insurance.
- Learn more: Flood Insurance Toolkit for Florida Realtors: http://www.floridarealtors.org/LegislativeCenter/Flood-Insurance-Toolkit.cfm
A second wave of impacts from Section 207 of the Biggert-Waters Act will occur in late 2014. It is not yet clear how many policies in Lee County will be affected by the loss of these subsidies because they are tied to the effective dates of FEMA map revisions.
This will begin a five-year phase out of “grandfathered” discounts. These are for structures that complied with maps in effect at the time of construction, but later were put out of compliance by a FEMA map revision, which established higher base flood elevations. Most of the Lee County impact will be for structures that moved into A, AE or V zones as a result of the 2008 remapping. Other policies were subsidized after minor, very localized map changes in 1989, 1994, 1996 and 2003.
Learn more about Biggert-Waters: