Sample of changes in subsidized premium rates under Biggert-Waters Flood Insurance Reform Act of 2012

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The rates quoted here are full-risk premium rates. Depending on individual circumstances, these new rates may be either phased-in over time, or may take effect immediately based on a number of triggering events. A timetable on rate changes can be found below in the section labeled “When Will Changes Take Effect?”.  For a single-story structure:   Rates based on a policy with a $1,000 deductible and $250,000 building coverage and $100,000 contents coverage. This scenario is based on a single-story building with no basement, crawlspaces or enclosures. An AE zone is an area subject to inundation by the 1-percent annual chance flood event. Base Flood Elevations are shown on Flood Insurance Rate Maps in these zones. AE zones are used on new and revised maps in place of numbered A zones from A1 to A30.

It is important to note that a small number of flood insurance policies protecting properties in very high risk coastal areas (VE Zones) — where wave action combined with high water causes increased damage — will see significantly higher premiums which could be in excess of $20,000 in rare cases.   Only an insurance agent can accurately provide a detailed premium quote given specific circumstances because flood zones where the property is located, and elevation of the lowest floor, will significantly impact premiums. It is important to work with insurance agents to see how policyholders may be able to reduce rates through elevating their buildings and choosing insurance levels and deductibles which provide proper protection.

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