Flood insurance rates could increase in Bayville – InsuranceNewsNet

Bayville households could see increased flood insurance premiums on policies that renew after April 1stdue to the new pricing system of the National Flood Insurance Program.

The new rating methodology, called Risk Rating 2.0: Equity in Action, ensures that “flood insurance rates are actuarially sound, equitable, easier to understand and better reflect an individual property’s flood risk,” according to a statement. of the Federal Emergency Management Agency. For new policies, this rating system has been in use since the past October 1st.

Risk Rating 2.0 compares rate changes to the legacy rating system that has been in place since the 1970s. The comparison data debunks a major myth held by many critics of the new methodology that, under the old system, rates of flood insurance were not subject to regular annual increases. david maurstadsaid the top executive of the National Flood Insurance Program in the FEMA statement. “The truth is that rates have gone up every year for all policyholders and will continue to do so if no action is taken.

“The side-by-side comparisons show that some policyholders will now experience declines in the first year of Risk Rating 2.0, while the majority of remaining policyholders will see premium increases mostly on par with what they already pay,” Maurstad added. change.

FEMA Said part of the changes now considers the cost of reconstruction, an aspect that ensures “equitable” rates for all policyholders.

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However, not all Bayville residents agree that the new rating methodology is fair or necessary. Former Mayor of Bayville doug watson expressed skepticism that the premium increase was necessary so soon after the Covid pandemic.

“We have things that we need to take care of right now, let’s not worry about whether the ocean will rise an inch by 2050,” Watson said. “We cannot focus on a pessimism that may occur in the future.”

According to Redfin, a full-service real estate agency that details market trends, approximately 1,184 homes in Bayville are at risk of flooding. Within 30 years, it is estimated that another 258 homes will be at risk. This would put 53 percent of the town in danger of flooding, with houses along the Boulevard and shore road more likely to be affected.

Many people in Bayville have experienced the damaging effects of flooding, caused in large part by superstorms and hurricanes.

“While Bayville has been standing, there has been flooding in the area,” david rappellingdirector of the Bayville Historical Museum, saying. “But a lot more people live here now than in previous centuries, so when a hurricane like ’38 hits Bayville, it does a lot more damage.”

High risk flood areas, as defined by FEMA, are areas with a 1 percent annual chance of flooding and a 26 percent chance of flooding over a 30-year mortgage. In Bayville, a community that experienced widespread damage during Superstorm Sandy in 2012, the base floodplain where flood elevations are provided are also considered when determining risk.

On the FEMA website, a map of flood insurance rates can help determine risk by location. At Mike Walsh’s house state farm insurance bellmore office, Chris Bauer, the agency’s flood specialist, showed the Herald how FEMA’s mapping system works. Enter an exact address in the map service, FEMA it takes into account things like location from the shoreline and elevation, thus determining the risk of flooding. Maps are drawn based on where there was loss and damage due to flooding.

Insurance companies like state farm can not write National Flood Insurance policies: must be written through FEMA. That said, an agency’s license may allow employees within that agency to write a flood policy through FEMAusing the mapping system as a tool to determine risk.

Flood insurance policies through FEMA require that the first year’s premium be paid in full. After that, Bauer added, customers can opt to have their monthly home and flood insurance premiums integrated into their mortgage payment. For example, if home insurance costs $120 per month, flood insurance costs $200 a month, and a mortgage is $3,000 one month, those three amounts would be bundled into a single monthly payment.

State Risk Classification 2.0 profiles can be found on FEMA’s website, fema.gov, along with additional information detailing the new system. Downloadable excel sheets and a state breakdown by zip code are provided, so homeowners can see what to expect.

According FEMApotential and existing National Flood Insurance Insureds should contact their insurance company or agency to find out their specific rates and if the changes will affect their policy.

Will Sheeline contributed to this story.

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