Mentor, Ohio, September 9, 2013… Residents in Northeast Ohio have suffered significant flooding this past summer. Lake National Bank offers this important information for residents in flood hazard areas.
The Biggert‐Waters Flood Insurance Reform Act of 2012 requires that increased flood insurance premiums be phased in and existing premium subsidies be phased out. As a result, property owners in “Special Flood Hazard Areas” may see more expensive insurance rates than what they are currently paying.
“We recognize the impact the Biggert‐Waters Act will have on households throughout our community, and we are committed to helping property owners prepare for this additional financial pressure in any way we can,” said Andy Meinhold, Lake National Bank President and CEO.
The new premiums will reflect the true flood risk of homes and businesses. Premiums have the potential to increase by as much as 25 percent per year for the next four years until full‐risk rates are reached.
“If you’re rebuilding after a flood, be sure to consult FEMA maps prior to construction,” said Meinhold. “Building in compliance with base flood elevation standards could protect your financial future.”
What residents in flood hazard areas can expect from the Biggert‐Waters Flood Insurance Reform Act
- Automatic increases. Policy rates for primary residences are automatically subject to increases if there has been change in ownership, a lapse in coverage, a change in flood risk according to new FEMA flood maps, or substantial damage or improvement to a building.
- Diminishing discounts. Existing subsidies for second homes, rental homes, businesses or repetitive loss properties are eliminated. Grandfather clauses also will be eliminated. All rates will be based on the building’s compliance with current flood zone recommendations, not the standards when the building was first built.
- Updated flood zones maps. FEMA is redrawing flood zone maps across the country. That means buildings might now be in a flood zone that weren’t before, or they’re now in a higher‐risk zone. These zones determine minimum building requirements and whether you meet these minimums determines what your insurance will cost.
- Higher annual increases. In the past, annual premium increases were limited to 10 percent; that limit is now 20 percent.
- Programs are available to help. FEMA offers three programs to reduce your risk and help you save money on flood insurance. To see if you qualify, visit fema.gov.
For more details on the Biggert Waters Flood Insurance Reform Act, visit http://nhma.info/nhma-biggert-article/ or call the National Flood Insurance Program Help Center at 1‐800‐427‐4661. You can also visit the following FEMA websites for more information:
About Lake National Bank
Lake National Bank was founded in 2005 and is Lake County’s only locally owned and operated bank. Lake National Bank offers a full line of retail and commercial banking services, including online banking, bill pay and remote deposit. In addition, customers can utilize the bank’s telephone banking system and 24‐hour access to its free Money Pass ATM system. Focused on its customers, Lake National Bank is a privately held financial institution headquartered in Mentor, Ohio.