Update on Flood Insurance Rate Increases

IMG_0213Flood insurance along the gulf coast is going to sky rocket in the near future. The National Flood Insurance Program (NFIP) supported by FEMA is 24 billion (with a B) in debt and doesn’t have a reserve.

Last July in 2012, our congressmen cut a deal with FEMA that if they would extend the NFIP they would allow them to go up on the rates in order to cover the amounts they were subsidizing in this program.

The National Flood Insurance Program will start to phase out some of its premium subsidies on Oct. 1, causing rates to increase for some property owners in areas affected by flooding. Some rates are already higher. Here’s what you need to know:

Why is this happening? When the NFIP was set up and flood-insurance rate maps were created, some older properties were grandfathered in and given subsidies to help defray the expense of costly flood insurance. Now that the grandfather provisions are due to phase out later this year, the owners of those properties will be required to pay unsubsidized flood-insurance rates.

What properties will be affected? The phaseout and subsequent rate increases will likely affect non-primary residences, business properties, multifamily units, and properties with repeated flood losses.

Which properties will not be affected? A property owner’s primary home is not likely to be affected by the rate increases unless the owner’s insurance policy lapses, the property suffers a severe repeated loss due to flooding, or it’s sold to a new owner. We understand there will still be a gradual increase.

How can Texas REALTORS® help consumers? The National Association of REALTORS® recommends three ways we can help consumers who live in or are buying an impacted property:

  • Determine if their community participates in the NFIP community-rating system
  • Find out if they’re eligible for a federal elevation grant to raise the property
  • Suggest that the owners look into lowering their insurance premiums with a higher deductible

Visit Realtor.org to learn how NAR is working with legislators to address the NFIP changes.

 

Check out this article from Realtor Magazine concerning Flood Insurance:

Update on Flood Insurance Rate Increases | realtor.org.

Advertisements

About padreeliteteam

Alta Monroe, Gayle Hood, Jules Wilk & Laurie Howell are a full-time professional and dynamic team known as the Padre Elite Team with RE/MAX 1st Choice in South Padre Island. Quality service for their clients is their number one priority. To them, it is about the client's needs and protecting their interests. Finding just the right property for their buyers or helping their sellers get their property SOLD is their goal. Helping clients step through the complicated process of buying or selling a property to a smooth closing is essential to them. A personal Bio on each of the team agents is posted on their website at www.PadreEliteTeam.com. The South Padre Island real estate industry is changing faster than ever these days. With the changes in the economy, there are new challenges with buyers, sellers, foreclosures, short sales, Internet marketing, our education, increases in inventories, changes in comparable sales, and frustrating politics. Alta, Gayle, Laurie, and Jules strive to stay on top of all of these changes and to keep in touch with their clients. Alta, Gayle, Jules & Laurie all hold designations they have acquired through eduction. These designations include CLHMS, CRS, GRI, RSPS, CPN, ePRO, SFR and RSPS. Gayle and Jules both hold the CLHMS (Certified Luxury Home Marketing Specialist) designation and they are the ONLY agents in the entire Rio Grande Valley that are members of the Institute of Luxury Home Marketing. This better qualifies them to share their specialized expertise with a luxury home seller or buyer. Making sure the buyer and the seller are represented correctly is a priority for this team. Investing in TREPAC (Texas Real Estate Political Action Committee) is important to this team since TREPAC has proven to be a major force in Texas by lobbying for Realtors and property rights for the consumer. For many years, the Padre Elite Team has been a major investor in TREPAC. Alta and Gayle have attended the National Association of Realtors Mid-Year Conference in Washington, D.C. often. The conference is primarily for Realtors that are Board directors or executives. It is a great way to stay on top of the current issues facing Realtors and homeowners in our country. They get to meet with their Senators and Congressmen to express their concerns. Last year they were invited to attend the Realtor PAC President’s Circle Conference in New York where they heard many famous guest speakers regarding current real estate issues. The Padre Elite Team also attends the RE/MAX International Conference each year to acquire more education and to keep up with the latest technology available to Realtors in the Marketplace. They have received numerous awards for being Top Producers in the real estate industry. Education is a priority for this entire team including their assistant, Grace. The GOOD news is that 2012, 2013, 2014 and now 2015 proved to be better each year for real estate sales in South Padre Island and the surrounding areas of Port Isabel, Laguna Vista/South Padre Island Golf Community, and Bayview. The real estate market is showing an increase in the number of sales and a leveling of values. Now that the market has hit the bottom, investors are finding that real estate is a great place to invest their money. It is still a buyer's market and a great time to buy. Alta, Gayle, Jules & Laurie all agree that it has been such a pleasure to live & work in a resort area such as South Padre Island. A hundred of your closest friends and family will visit when you live near the beach! Clients are always encouraged to contact them. For more information about this team and to view their blog, visit www.PadreEliteTeam.com.
This entry was posted in Uncategorized and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s