One of
the overlooked issues in the ongoing national flood insurance debate is the
Grandfather Rule. This rule was written into the National Flood Insurance
Program prior to the passage of the Biggert Waters act and provides protection
for homeowners as they make long-term investment decisions.
Quoting from
floodsmart.gov (The official site of the NFIP), “When flood map changes occur,
the National Flood Insurance Program provides a lower-cost flood insurance
rating option known as ‘grandfathering.’” In short, if flood maps or elevations
are changed, then homeowners who are currently in compliance and have flood
insurance would continue to have their flood premium rated based on the prior
maps/elevations. This is exactly analogous to the situation when a town changes
zoning codes and grandfathers existing structures rather than forcing owners to
make onerous changes to meet the new code.
I raised my
home at significant expense when I renovated in 2007 in order to become
compliant. What happens if I now raise my home an additional 5 feet to meet the
new proposed standard? What if FEMA comes back in 2019 and increases elevations
another 5 feet? This process could well become a never-ending cycle that will
make it impossible to make informed investment decisions on any property that
is in a flood plain and therefore subject to FEMA’s whims.
Congress put
citizens in this untenable position by rescinding the Grandfather Rule as part
of Biggert Waters. Congress must act now to reinstate the Grandfather Rule.
Jack Sauer
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