Flood Insurance Reform Act of 2012 - Florida Blog

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In March of this year FEMA published a Fact Sheet discussing Sections 205 and 207 of the Flood Insurance Reform Act of 2012. This fact sheet provides some background on the creation of the National Flood Insurance Program (NFIP) and the concept of grandfathering non-compliant buildings. The fact sheet then goes on to discuss that "the new law eliminates some artificially low rates and discounts which are no longer sustainable". In other words, flood insurance rates are going to increase and in some areas by a lot.

Historically, buying or selling a property and/or allowing a flood policy to lapse would normally trigger the implementation of current rates. Unwilling to wait, the federal government enacted the Flood Insurance Reform Act of 2012 which will begin eliminating all remaining grandfathering. According to FEMA's fact sheet, this elimination will happen gradually with new rates increasing by 20% per year for five years with implementation anticipated in 2014.

What can be done to lower costs for Florida homeowners and business owners concerned about flood damage? FEMA offers the following suggestions:

  • Talk to your insurance agent about your insurance options.
  • You'll probably need an Elevation Certificate to determine your correct rate.
  • Higher deductibles might lower your premium.
  • Consider remodeling or rebuilding.
  • Building or rebuilding higher will lower your risk and could reduce your premium.
  • Consider adding vents to your foundation or using breakaway walls.
  • Talk with local officials about community-wide mitigation steps.

If you have any specific floodplain related questions please contact either the Association of State Floodplain Managers at: www.floods.org or Karl Robinson at: This email address is being protected from spambots. You need JavaScript enabled to view it.

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