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Home » FEDS report New Flood Insurance Rules
February 10, 2015

FEDS report New Flood Insurance Rules

February 8th 2015


Contact: Amanda Edwards
& E Insurance Agency
2900 Route 88 Point Pleasant NJ 08742


[email protected]


New Flood Rules—Just in time for April 15th 2015!

New Jersey Property Owners from Cape May to High Point felt the effects of Hurricane Sandy, and If you’re one of those who had your home or property damaged by Flood waters,
you’ve already been through enough. Unfortunately  now property owners are facing new challenges as the Federal Govermnent through  FEMA and the
 National Flood Insurance Program have annouced some Big changes coming shortly.
And when the Government says there are changes coming,  we should know  its gonna cost More!

Effective April 15 2015,  The National Flood Insurance Program has enacted new surcharges based on the Homeowners Flood Insurance
Affordability Act of 2014 (HFIAA).

Flood Insurance Premiums to Jump!

Mr. Ernest Caponegro, President and Owner of  I & E Insurance Agency of Point Pleasant commented on the new changes. “NJ Homeowners and Property Owners
across the board will see costs go up as the Federal Government raises rates to offset serious losses over the last few years.
” All Flood Insurance customers will be effected, but areas hit hard by Hurricane Sandy from Seaside Heights and  Point Pleasant Beach all the way up
to Sea Girt, Sandy Hook and Atlantic Highlands will feel it more as the increases are on top of the increased costs they may have had from  previous years . “
He added “Homeowners need to prepare themselves for the cost increases. Property owners can find ways to minimize the New Price increases by  being proactive,
and look at alternatives to coverages and deductibles.  First look into all your property Insurance, and your Home insurance policy, make sure your property
has a Flood elevation certificate applied to your policy and think about raising your deductibles. This can help lower your immediate cost,
but understand this—- you are self funding your deductible, so  take the difference saved and put it away for that flood emergency.  Also this is the perfect time
to evaluate your home policy, what are the wind deductibles, what are the hurricane deductibles? Be careful, a 5% hurricane deductible could mean that your out of pocket 
will be 5)f your your home coverage, so if your house is insurred for $500,000 you suffer a $25000 loss in the event of hurricane damage, This is a large
deductible, there are companies willing  to insure NJ Coastal Properties at just $1000 per claim, Call us at 732-899-8177 for more details.  

Increases in Flood Insurance rates will continue. This problem isn’t going away anytime soon.  and when intereviewed , several Property owners expressed their belief that
all over the county Flood Insurance rates too low for those who live near the water, and some the rates have been subsidized for too long.  As one property owner
stated, ” its another entitlement and subsidized program that the Government has played around with, and I gottta pay for some Millionaires cheap
flood Insurance on the Beach, now way.” Needless to say, opinions are heated on this issue.


New Charges include:


1)      Primary residential surcharge $25. This includes Single Family and Condo Units including preferred policies.

2)      Non-Residential surcharge is $250.00 on single family and condo units.

3)      Multi-family Residential $250.00 includes condo and other buildings.

4)      Non-Residential $250.00


Primary Residence Verification


Previously identified when customer occupied residence at least 80% of prior year,

but as of 4/15/2015 customer must occupy their property  more than 50% of the time to qualify as a primary residence.


To verify,  FEMA requires one of the following: 1) Current Drivers License 2) Auto registration 3) Auto Insurance proof  4) Voter registration
5) Children’s school attendance proof  6) Homestead Tax form for primary home or  7) NFIP Primary Residence Verification Form.


New Maximum Deductibles

HFIAA has increased the deductible to a max of $10,000 for Single and Two and 4 Family dwellings-
Must apply to both property and content.  Customer’s responsibility to check with Mortgage Company for approval on these larger deductibles.  


Average Annual Flood premium increases will be limited to 15% for each class of risk.

Average Pre-Firm subsidized policy increase will be at least 5%.


18% Maximum Increase for any Individual Policy.

And the Federal Policy fee has been increased to $45!

Mr. Caponegro  closed by saying,  ” We know from experience concerning Coastal and Water front properties that One must be proactive, and diligent. This is a good
opportunity time to review all your policies —  make sure you’re getting the proper credits and maximizing your insurance dollars.  Speak with your Insurance Broker
or Agent as soon as possible and find out how these changes will effect you,  prepare,  but  don’t be surprised
when the new bill comes in and your costs have gone up
Understand this, premium increases are coming from the National flood Insurance Program, and Not from your Insurance company or agent.
 And if you’re confused talk to a Trusted Choice agent or give us a call, we can help explain the changes and help you get all the credits available. 

I & E Insurance Agency is a full service Insurance and Retirement Planning Agency  member of the ANE Network of Independent Insurance Agencies 
and associated with the 
Trusted Choice® Agency network. Securities offered through Southeast Investments NC INC. member FINRA/SIPC-services offered through unaffiliated entities.


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