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Tuesday, June 11, 2013

Reinstate the Grandfather Rule in flood map changes




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
Lavallette, N.J.

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