Flood Insurance Hikes

[dmtfish]

Has anyone who lives in Flood Zone AE been notified of insurance rates going up?? I read where the Biggert-Waters reform act goes into affect Oct 01. I have not been contacted by my insurance agency notifying me of a rate increase. I purchased my home in Dec of last yr, fully aware I was in a flood zone. I was prepared to deal with flooding with the trade off being water access to prien. I am ok with paying 2000 a yr in insurance, but had no idea about this bill until the last couple months. Seems like RE agents and mortgage lenders should have had to be legally obligated to forwarn potential buyers of the rate increase. Anyway, I have not been notified by my insurance carrier, nor from the homeowners assoc (have coverage thru them as well). Can any insurance agents out there verify this will happen??

[brooks05]

Flood rates are going up 25% per year for the next 5 years according to commissioner Donlen.

[brooks05]

http://m.wafb.com/autojuice?targetUr...cent-each-year

[newguy]

The latest news I've heard was that there are now several states that are with us in opposing this act/law. I know Landrieu and Vitter have been all on it in DC since this first came out and there was some talk about suspending the rate increases to get the law and rates sorted out. In the end, I think we'll be ok just because govt. officials know that there are huge numbers of people who will not be able to pay it. ALL homes located in flood zones are required to have the flood ins., the banks and mortgage companies know this and are aware that in many circumstances people will not be able to pay the mortgage and their insurance if these rates would go into effect. **IF** these rediculous rates were to go into effect Louisiana's economy goes
into the toilet almost overnight, it truly would be a disaster, that's no secret and i personally am not overly concerned. I will say that i believe
we will eventually see rate hikes but the over-the -top numbers discussed a few months ago will not be the case.

[Reggoh]

25% per year for 5 years is probably close to a 200% increase with compounding... that's pretty steep... What do they use to substantiate such an increase?

Here is an interesting read on how this came to pass... Landrieu and Vitter both voted for the bill... and now are both trying to stop some aspects of it.

http://www.nola.com/politics/index.s...gert-wate.html

[southern151]

Originally Posted by Reggoh

25% per year for 5 years is probably close to a 200% increase with compounding... that's pretty steep... What do they use to substantiate such an increase?

Here is an interesting read on how this came to pass... Landrieu and Vitter both voted for the bill... and now are both trying to stop some aspects of it.

http://www.nola.com/politics/index.s...gert-wate.html

I suspect that they're broke so, this is a way to make up for some of their ridiculous spending. Really, in my mind, it's redistribution of wealth without having to call it that.

I'd venture to guess that all of S. LA will be considered flood zone, regardless of whether or not it's ever flooded. The remapping that FEMA did over here recently is outrageous!