I want to update NSCA members of new changes in the National Flood Insurance Program and a modification of FEMA flood maps. FEMA is a government agency that currently subsidizes homeowner flood insurance and budgets money for damages pertaining to floods, hurricanes and major storm damage. The program is running a $24 Billion deficit due to claims paid out for recent catastrophies (including hurricane Sandy).

So, in order to eliminate this deficit the government will no longer subsidize or discount homeowner flood insurance AND they will expand the flood zone MAPS placing homes that were not previously in a flood zone to now be in a flood zone. Also, rates will start going up at least 25% per year until FEMA has recouped their money!!

Current homeowners will see their bills steadily increase over the next 5 years, BUT new homeowners buying homes in a flood zone can expect their flood insurance to go up at least 5 to 7 times what the current homeowner is now paying based upon flood risk. In one case a homeowner was payingf $2,100 per year for flood insurance on Phillips Road and when they went to sell their home the new homeowner's bill went to $16,500 per year and it will go up at least 25% per year for the next 5 years!!!

There is a bill in Congress trying to delay this increase and re-mapping for further studies, but is doesn't look like it will pass at this time.

As you may well imagine, this will devastate the sale and purchase of Real Estate currently in a flood zone or soon to be in a flood zone anywhere in the US. Sellers won't be able to sell and buyers won't be able to buy. People who currently live in a flood zone won't see these monumental types of increases if they keep their homes, but their bills will still increase dramatically over the next 5 years.

I advise people to contact their flood insurance company to see how you will be impacted. People without a mortgage can decide not to get flood insurance and do what the industry is calling "Self Insurance". The banks holding mortgages are the ones who require flood insurance. This basically means you are not covered in case there is severe damage to your home due to floods or hurricanes. It is a risk that needs to be weighed.

Thank You,

Lou Julian