Homeowners worry about flood insurance rates [Charleston Daily Mail, W.Va.]
By Andrea Lannom, Charleston Daily Mail, W.Va. | |
McClatchy-Tribune Information Services |
Now, because of increasing flood insurance premiums under the 2012 Biggert-Waters Flood Insurance Reform Act, Holmes said he and his family might lose their
Homeowners nationwide are experiencing similar problems.
The act, which was attached to the federal transportation bill, was meant to shore up the National Flood Insurance Program because of multiple claims from Hurricane Katrina.
The increase is supposed to reflect the full risk for covering properties. Currently, many flood insurance policies are subsidized, particularly residential policies. In
Most people can keep their primary residence's subsidized rate unless they sell their property, let the policy lapse, buy a new policy or their property sustains flood damage.
Starting
Beginning this month, properties with subsidized rates that have experienced severe or repeated flooding and owners of businesses or non-residential properties in a
Holmes, who works as a coal miner in
That number later went up to
Holmes bought the house for
"I can't afford that. I'm going to have to foreclose," Holmes said. "It's going to ruin my credit; so I probably won't be able to buy another home. And renting, they check your credit. So, I don't know what's going to happen there."
He isn't alone.
Just in his neighborhood, several residents expressed concerns over the increasing costs, though none had experienced an increase quite as dramatic as his.
One of his neighbors said his insurance increased from
"Our daughter has been pleading for us to move and there will be a time when we're not young and can't drive a car. We can't sell our home," she said.
These concerns represent a national problem. According to a September article in the
Rep.
"We are analyzing the implications of the act on
Grishaber said many people are getting letters from the insurance company telling them to get elevation certificates, which can hurt or help them.
This certificate will have the base flood elevation, the lowest floor elevation and the highest floor elevation.
Grishaber said
There are a few things people can do to help decrease their rates, Grishaber said. He explained people can get an elevation certificate and sometimes, the solution can be as simple as elevating an air conditioner or furnace.
However, it may not make a big difference to everyone.
Grishaber said one
He said if that resident did so, she would end up owing
Grishaber said people also may call their municipality's flood plain administrators if they have questions and they will assist residents the best way they can.
The attorney general's office encourages people to contact the Consumer Protection office at 1-800-368-8808 if they experience substantial increases in flood insurance because of the act.
For Holmes, he hopes a solution will come up so he won't have to lose his home.
"I love this neighborhood and I love this house and now, I'm going to lose it before I can enjoy it," he said. "It's disheartening. I never know when I go to work if I'm going to get a call saying I have to get out."
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