David Riley, of our office, was recently quoted in the Providence Business News front page story “Rising Above Flood Insurance Costs” (Feb 3-9 issue).
The changes in Flood Insurance coverage and pricing brought on by implementation of the Biggert-Waters Reform Act of 2012 (BW 2012) are already having a big impact in our area. In addition, changes in the flood maps that has been occurring for the past few years, will also have an impact; you may now be in a High Hazard Flood Zone and not even be aware of it.
Customers who are vulnerable to floods are looking at different options to minimize their exposure to both the flood itself and the impact of the new flood rates. Elevating your building is one of the new options; filling in basements and moving mechanical from the basement to higher levels is another.
For most people, the buying, selling, or renovating of an existing property in high hazard flood prone areas now requires you to know and understand your flood exposure and the impact the new flood pricing will have on your plans and future flood insurance costs. Even if you don’t have bank-financing now, and don’t need to buy the coverage now, you should be aware of what the costs will be for future buyers and/or your heirs so that you and they can be prepared for future costs.
Quoting from the PBN article, “The flood-insurance changes haven’t been noticeable with his commercial customers yet, said Riley. But expansions or changes in ownership will kick those changes into effect.” Sales of residential properties have already felt the impact with some buyers opting out of Buy-Sell agreements once they are made aware of the impact of the flood premiums.
The impact has been so severe for some, that it is now generating publicity which is making the public aware of the issues. If you have any concerns about your exposure or costs please be sure to contact one of the agents at John Andrade Insurance who can help advise you on what you need to do and what your costs might be.