Flood Insurance Reform
New Law will Increase Cost of Flood Insurance
Congress recently passed the Flood Insurance Reform Act of 2012 which results in many important changes to the National Flood Insuurance Program (NFIP). The NFIP defines special high-risk flood hazard areas as those with at least a 1 percent chance of annual flooding. Under the new law (known as Biggert-Waters), premium rates on many properties in these special flood hazard areas will increase. Rates for nearly all buildings located in special flood hazard areas will be revised over time to reflect full flood risks. Subsidies and grandfathered rates will be eliminated for most properties in the future.
Starting Jan. 1, 2013, premium rates for subsidized policies insuring nonprimary residences began increasing. Rates will increase 25 percent per year until they reflect the full nonsubsidized rate. Later in 2013, premium rate increases will take effect for additional categories of subsidized properties, including business properties, substantially damaged or improved properties, severe repetitive loss properties, and any property that has incurred flood-related damages where claim payments exceed the fair market value.
Beginning in 2014, premium rates for other properties, including nonsubsidized properties, will increase as new or revised flood insurance rate maps become effective and full risk rates are phased in. These premium rate increases will include areas that have received new or revised flood insurance rate maps since July 6, 2012 (the date of enactment of the new law).
Here are some things that you can do proactively to try to lower your insurance costs:
- Talk to your insurance agent about your options
- If you do not have one already, you will likely need an Elevation Certificate to determine your true
- risk premium and to make informed decisions about flood mitigation and rebuilding
- Higher deductibles might lower your premium
- Consider incorporating flood mitigation into your remodeling or rebuilding
- Elevating or rebuilding higher will lower your risk and could reduce your premium
- Consider adding flood-vents to your foundation walls or using breakaway walls to protect your foundation from flood damage
- Consider adding FEMA & ICC-ES certified flood-vents that could reduce your premium up to 80%
- Talk with local officials about community-wide mitigation steps
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Our experts can go over your business model and let you know about all the different business insurance plans and how each kind works for you best. There are many types of business insurance programs that can cover you no matter what type of business you are in. Here are some of our most popular business insurance programs
- Workers Compensation
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If you don’t see something that fits your business model, contact us today for a custom business insurance plan that fits your business.
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Call Us Today At ♦ (225) 272-4004
Louisiana Gulf Insurance Agency
Baton Rouge LA 70816
Phone: (225) 272-4004