Why didn’t these realtors complain when a company out of South Florida started submitting LOMR applications on gulf and ocean front condominium buildings along the Florida coastline. Many of the buildings had sustained major flood damage from hurricanes and some were actually in the NFIP Repetitive Loss Program. Even with these facts available, FEMA officials determined these water front buildings were not in velocity flood zones. The buildings were rezoned and premiums were reduced by an average of over 90%. I’m sorry… I guess I answered my own question. These realtors don’t care about what’s right or wrong… they simply want rates to be as low as possible so they can sell property.
You can bang on the realtors all you want, but the fact is, there are people who bought their homes 20-30 years ago who are facing 25% per year rate hikes. Add to that the fact that they might not be able to sell their home because the new buyer would have to pay $10k+ per year in flood insurance. These people did nothing wrong. They played by the rules and they are getting completely screwed. I’m all for actuarily sound rates, but people who played completely by the rules could end up losing their homes.
Entire communities could become cash-only, tear down purchases. I would hope that wasn’t the intent of the bill.
Have you seen some of the rate increases? People paying $1600 could be paying $10k or more. They played by the rules. These aren’t multi-millionaires. These are people who bought a nice little house close to the beach. And they’re going to get crushed for doing everything right.
If they knew the rules, I’d have no sympathy for them. The rules were changed on them and it will ruin some financially. If you were in their position, you would be the FIRST one bitching and moaning. Please don’t pretend otherwise.
I think this a typical Gov’t response. Pass a bill in response to the Sandy mess and the details and impact is completely overlooked or not fully investigated. I have no sypathy for home owners on barrier islands but there are plenty of low income residents living in flood zones that can’t afford this. In fact, historically the low to moderate population has settled in these flood prone, undesirable (near ports, industrial areas, etc) areas becuase the rich wouldn’t dare live there. Here’s the deal Hillsborough agent – any poster on this site that doesn’t live in Florida thinks we all live on the beach. And we don’t.
September 25, 2013 at 11:24 am
No Sympathy says:
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I didn’t say anything about homeowners that are being affected by Biggert-Waters. I completely agree with the fact they should not be unjustifiably penalized. This is not how you make the program actuarially sound. Over the past couple of years the federal government has paid billions of dollars in federal assistance for properties that don’t carry flood insurance. We’ve seen it in New jersey, Tennessee and this year Colorado. This program would be actuarially sound if the federal government required flood insurance on any property that had a federally backed loan regardless of where it’s located. The LOMR approvals for these repetitive loss and ocean/gulf front condominiums pretty much sums up the mentality of Legislators and NFIP officials that pass and enforce legislation like Biggert-Waters. Lets give rediculous rate decreases these properties at the expense of homeowners that followed the rules. My lack of sympathy is not for the homeowners…. it’s for realtors that don’t really care one way or another as long as they can sell property. These are the same realtors that celebrate unjustified LOMR rate decreases because they make condominium unit easier to sell.
FACT: On the Alabama Gulf Coast there are 77 condominium buildings sitting on the gulf front that are located in “V” flood zones according to the current flood maps. To date, of those 77 buildings 71 have been approved for Letters of Map Revision even though the local flood plain managers disagreed with the LOMR’s and, in every case, declined to sign concurrence letters. These buildings suffered flood losses during Hurricanes Erin and Opal in 1995, Hurricane Danny in 1997, Hurricane Georges’ in 1998 and Hurricane Ivan in 2004. At least ten of the buildings were in the NFIP Repetitive Loss Program. The annual premiums were reduced by over 90% and the annual revenue loss to the NFIP is over $5MM. This has been happening throughout Florida for several years. It appears making the program actuarially sound is not really a priority for anyone in the federal government. Biggert-Waters simply gave legislators an opportunity to tell the American taxpayers it’s a priority. It’s amazing that legislators would be willing to overlook the LOMR issue at the expense of over 6,000 individual homeowners that will be affected by Biggert-Waters on the Alabama coast. Alabama Senator Shelby is the road block. He adamantly defends Biggert-Waters and will not budge. Hard to understand when he does nothing to prevent these unjustified rate decreases for gulf front condominium buildings in his own state. If you really want to fight section 205 of Biggert-Waters go to your US Congressmen and ask them why they would support raising homeowner rates and at the same time condone these unjustified LOMR approvals? It’s a good question that deserves an answer. I bet when it’s all said and done section (207 grandfatering will be reinstated and these LOMR’s will be permanent).
people seem to think the only people being effected are those that live in big houses on the beach…dead wrong,.I live in a very modest 100k home in rural Upstate NY…yes, no where near an ocean, not effected by hurricanes But it so happens I live in a FEMA designated 100 year flood zone because there is a creek nearby that may flood once every hundred years. We bought the house knowing we were in this “flood zone” but at the time rates low..about 800 bucks a year..now we have to pay 3 times that…to insure only the amount of our mortgage, not even the full value of the home.. and this because once every hundred years we may get some water in our basement? people like to make comments like if you live somewhere where it floods you deserve to pay the price…well guess what people, its not just wealthy beachfront properties being effected!!! its lower middle class houses that don’t even flood that are being effected. As i said, we knew we were in a FEMA designated flood zone when we bought the home, and have no problem paying “our fair share” but this is not even close to FAIR, so before you make comments that are ill informed and ignorant, get the facts! It just may be that some of you will soon get a letter in the mail telling you that YOU are now in a flood-zone, and will have to pay..wouldn’t that be sweet irony…..
Why didn’t these realtors complain when a company out of South Florida started submitting LOMR applications on gulf and ocean front condominium buildings along the Florida coastline. Many of the buildings had sustained major flood damage from hurricanes and some were actually in the NFIP Repetitive Loss Program. Even with these facts available, FEMA officials determined these water front buildings were not in velocity flood zones. The buildings were rezoned and premiums were reduced by an average of over 90%. I’m sorry… I guess I answered my own question. These realtors don’t care about what’s right or wrong… they simply want rates to be as low as possible so they can sell property.
You can bang on the realtors all you want, but the fact is, there are people who bought their homes 20-30 years ago who are facing 25% per year rate hikes. Add to that the fact that they might not be able to sell their home because the new buyer would have to pay $10k+ per year in flood insurance. These people did nothing wrong. They played by the rules and they are getting completely screwed. I’m all for actuarily sound rates, but people who played completely by the rules could end up losing their homes.
Entire communities could become cash-only, tear down purchases. I would hope that wasn’t the intent of the bill.
BANG, BANG, BANG.
These same folks scream every year when someone wants to raise rates and the can gets kicked further down the road.
So now, instead of a smaller annual increment, they get kicked in the teeth.
So? My rates go up every year, but I don’t have some politico buying my vote by saying its not fair.
Time to join the real world people.
Have you seen some of the rate increases? People paying $1600 could be paying $10k or more. They played by the rules. These aren’t multi-millionaires. These are people who bought a nice little house close to the beach. And they’re going to get crushed for doing everything right.
If they knew the rules, I’d have no sympathy for them. The rules were changed on them and it will ruin some financially. If you were in their position, you would be the FIRST one bitching and moaning. Please don’t pretend otherwise.
I think this a typical Gov’t response. Pass a bill in response to the Sandy mess and the details and impact is completely overlooked or not fully investigated. I have no sypathy for home owners on barrier islands but there are plenty of low income residents living in flood zones that can’t afford this. In fact, historically the low to moderate population has settled in these flood prone, undesirable (near ports, industrial areas, etc) areas becuase the rich wouldn’t dare live there. Here’s the deal Hillsborough agent – any poster on this site that doesn’t live in Florida thinks we all live on the beach. And we don’t.
I didn’t say anything about homeowners that are being affected by Biggert-Waters. I completely agree with the fact they should not be unjustifiably penalized. This is not how you make the program actuarially sound. Over the past couple of years the federal government has paid billions of dollars in federal assistance for properties that don’t carry flood insurance. We’ve seen it in New jersey, Tennessee and this year Colorado. This program would be actuarially sound if the federal government required flood insurance on any property that had a federally backed loan regardless of where it’s located. The LOMR approvals for these repetitive loss and ocean/gulf front condominiums pretty much sums up the mentality of Legislators and NFIP officials that pass and enforce legislation like Biggert-Waters. Lets give rediculous rate decreases these properties at the expense of homeowners that followed the rules. My lack of sympathy is not for the homeowners…. it’s for realtors that don’t really care one way or another as long as they can sell property. These are the same realtors that celebrate unjustified LOMR rate decreases because they make condominium unit easier to sell.
FACT: On the Alabama Gulf Coast there are 77 condominium buildings sitting on the gulf front that are located in “V” flood zones according to the current flood maps. To date, of those 77 buildings 71 have been approved for Letters of Map Revision even though the local flood plain managers disagreed with the LOMR’s and, in every case, declined to sign concurrence letters. These buildings suffered flood losses during Hurricanes Erin and Opal in 1995, Hurricane Danny in 1997, Hurricane Georges’ in 1998 and Hurricane Ivan in 2004. At least ten of the buildings were in the NFIP Repetitive Loss Program. The annual premiums were reduced by over 90% and the annual revenue loss to the NFIP is over $5MM. This has been happening throughout Florida for several years. It appears making the program actuarially sound is not really a priority for anyone in the federal government. Biggert-Waters simply gave legislators an opportunity to tell the American taxpayers it’s a priority. It’s amazing that legislators would be willing to overlook the LOMR issue at the expense of over 6,000 individual homeowners that will be affected by Biggert-Waters on the Alabama coast. Alabama Senator Shelby is the road block. He adamantly defends Biggert-Waters and will not budge. Hard to understand when he does nothing to prevent these unjustified rate decreases for gulf front condominium buildings in his own state. If you really want to fight section 205 of Biggert-Waters go to your US Congressmen and ask them why they would support raising homeowner rates and at the same time condone these unjustified LOMR approvals? It’s a good question that deserves an answer. I bet when it’s all said and done section (207 grandfatering will be reinstated and these LOMR’s will be permanent).
The prior post should have said: I bet when it’s all said and done section (207 grandfatering) will be repealed and these LOMR’s will be permanent.
people seem to think the only people being effected are those that live in big houses on the beach…dead wrong,.I live in a very modest 100k home in rural Upstate NY…yes, no where near an ocean, not effected by hurricanes But it so happens I live in a FEMA designated 100 year flood zone because there is a creek nearby that may flood once every hundred years. We bought the house knowing we were in this “flood zone” but at the time rates low..about 800 bucks a year..now we have to pay 3 times that…to insure only the amount of our mortgage, not even the full value of the home.. and this because once every hundred years we may get some water in our basement? people like to make comments like if you live somewhere where it floods you deserve to pay the price…well guess what people, its not just wealthy beachfront properties being effected!!! its lower middle class houses that don’t even flood that are being effected. As i said, we knew we were in a FEMA designated flood zone when we bought the home, and have no problem paying “our fair share” but this is not even close to FAIR, so before you make comments that are ill informed and ignorant, get the facts! It just may be that some of you will soon get a letter in the mail telling you that YOU are now in a flood-zone, and will have to pay..wouldn’t that be sweet irony…..