While homeowners in high-risk flood zones can expect some measure of Congressional backtracking on the Biggert-Waters Flood Insurance Reform Act of 2012, there’s no such reprieve in store for businesses in high-risk flood zones – the phase out of below-market rates for flood insurance began Oct. 1, 2013 and remain in place. Businesses of all shapes and sizes in communities across the country may find themselves in a state of sticker shock, just like this Fort Myers, FL business owner profiled in a FOX 4 News report.
When Jacki Liszak opened her flood insurance bill in October, nothing could have prepared her for the numbers she saw. Her premium, which had been $2,700, now showed $47,000– a 1,640 percent increase.
Four months ago, Liszak told Fox 4 she wasn’t sure how she was going to proceed because she couldn’t afford the premium.
“To have such an increase in one year’s time with no warning…. it’s unconscionable. I don’t even have words for it because it’s so shocking,” Liszak said.
Commercial property, second and rental homes and properties with severe or repetitive flooding are excluded from the proposed Homeowner Insurance Affordability Act of 2013 (a relief bill delaying rate increases for four years) and are subject to increases until rates are unsubsidized – in theory, commensurate with the level of actual flood risk.
If you own, manage or represent commercial property, be diligent about flood risk:
- Stay informed of flood insurance rate map changes in your area.
- Contact your legislative representatives and tell them unequal treatment of property owners is unacceptable.
- Conduct a flood risk evaluation, a proactive strategy to mitigate flood risk, protect the real estate investment and verify whether or not the structure is built to minimize the risk of flooding.
For more information, including a complimentary flood risk evaluation performed by an expert team of flood risk professionals, complete this form.