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Panic Over Premiums

Civic leader warns of possible skyrocketing flood insurance rates


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A remapping of flood zones could result in exponentially higher premiums for homeowners in local communities of Rockaway, Broad Channel, Staten Island and beyond. Photo: Facebook

A remapping of flood zones could result in exponentially higher premiums for homeowners in local communities of Rockaway, Broad Channel, Staten Island and beyond. Photo: Facebook

The House Financial Services Committee’s unanimous endorsement of legislation to reauthorize and reform the National Flood Insurance Program (NFIP) could have a “catastrophic” impact on local homeowners who may see their flood insurance dues systematically multiply over a short period of time.

While FEMA’s NFIP initiative publicly aims to “provide affordable insurance” to property owners in and around U.S. coastal areas, a closer look actually reveals proposals that would serve policyholders with annual increases of up to 18 percent. The annual amount owed could reportedly double after four years.

Those owning a second home would reportedly face premium hikes of up to 25-percent annually, and possibly double every three years until reaching a FEMA-imposed actuary rate.

In fact, in a report provided by George Kasimos of Stop FEMA Now, the New Jersey-based realtor cited the federal agency’s ultimate plan of inflating premiums based on a neighborhood’s construction/replacement costs.

But what activists, such as Broad Channel Civic Association President Dan Mundy Jr., are concerned with is the government’s bid to implement a Risk Rating 2.0 map designed to reassess coastal communities and levy higher rates to properties situated closer to rivers, oceans and bays.

“A new mapping system that they’re proposing is going to be a disaster because FEMA has never gotten a mapping system done right. From Maine to Louisiana, you’ll find every major state decrying what a horrible mapping system it is,” surmised Mundy, a lifelong resident of Broad Channel that is entirely surrounded by Jamaica Bay waters.

The 56-year-old is among the most well-versed civilians throughout Queens in terms of being up to speed on all city and state government issues. Many of his middle and working class neighbors, however, have been lulled into “a false sense of security” that their premiums will continue to remain relatively stable.

The reason, he states, that flood insurance in New York City and other parts of the country haven’t experienced dramatic changes over the past seven years is due to a series of rallies that took place in seven states to block a FEMA-instituted 25-percent flood insurance hike.

What’s more, Congress has applied 12 short-term extensions resulting in brief lapses since FY2017 that some critics—including Mundy—say is tantamount to the feds kicking FEMA’s remapping scheme down the road.

Last month’s approval of the National Flood Insurance Program (NFIP) Reauthorization Act of 2019 by the House of Representatives— introduced by Rep. Maxine Waters— would provide a five-year reauthorization of the NFIP.

The bill, according to Waters will “ensure the affordability and accessibility of flood insurance,” and is currently being fast tracked by House leaders in hopes of eventually advancing it to the Senate.

Mundy doesn’t share the Congresswoman’s enthusiasm and in fact stated: “When this thing gets adopted, if we don’t get some changes, the premiums that [FEMA] will be proposing are going to destroy communities.”

People residing in “x-zones” of Howard Beach and portions of Rockaways who haven’t been yet been required to purchase flood insurance may suddenly be hit with annual premiums of $3,500 to $4,000 a year as a result of FEMA’s remapping, said Mundy.

“So, when FEMA was around here making the rounds, that’s one of the things they pushed. Everybody forgot about it because they pushed back on the maps. They’re on hold—they’re going to be adopted very shortly.”

Once the new maps are drawn and go into effect, as a result of what would amount to an NFIP overhaul, the pool of five to seven million people compelled to insure themselves against the occurrence of natural disasters could exponentially increase, as more people will be lumped into high-risk flood zones.

The overhaul’s effects in other states like Louisiana, moreover, could be monumental, where some coastal community residents are already paying $20,000 a year for their insurance packages.

“We haven’t heard from [Senator] Schumer or [Senator] Gillibrand on this,” said Mundy. “This is something that’s happening now. The reauthorization in Congress is at a very critical point. I would love to hear something from Schumer or Gillibrand’s office on this.”

The Wave’s attempts to obtain a statement or comment from Senator Kirsten Gillibrand have proven unsuccessful, but we did receive input from Senator Charles “Chuck” Schumer via email.

“It makes no sense for the administration to think that they can propose major reforms on how we pay for flood insurance, and how it might impact property values across the Rockaways, without presenting its plan in the community or answering a litany of questions by Congress. I have long been pushing for the NFIP to be improved, but we cannot try to prop up the program on the backs of coastal communities, like the Rockaways, that – under this plan – could become the bullseye of backbreaking costs,” weighed in Schumer.

One state lawmaker who has been responsive to these concerns is Assemblywoman Stacey Pheffer Amato, who in 2017 organized a think tank, or working group, entrusted with drafting and forwarding a list of recommendations to Waters, who serves as the Chairwoman of the House Financial Services Committee.

The letter’s recommendations call for the following:

Grandfathering rules that would maintain the carry-over of rates under the reauthorization.

A reform of the claims process

Increased accountability of NFIP contractors.

Additional funding to improve map accuracy and show both present and future risk.

The correction of inconsistent quotes via enforcement or other mechanisms.

Expanded mitigation options and credits.

Caps on mandatory required premiums for low-income homeowners.

Elevation certificate reimbursements for homeowners who need them.

“So, aside from everything else that’s going on, FEMA is saying: ‘We’re mapping new areas. We didn’t consider you to be in a flood area, but you are now. That’s happening in Howard Beach right now,” stated Mundy.

Rates of $3,000-$4,000 in the near future may force older people who may have already paid off their mortgages to opt out and move. Younger couples with limited resources, on the other hand, may end up losing their homes against their will.

Mundy couldn’t contain his frustration over a lack of support on the part of influential elected officials who could make a difference.

“We have a bill that’s proposed and it’s not a good one. I don’t hear a damn word from Gillibrand or Schumer, who have tens of thousands of people in their district and really should be leading on the issue. They should be out there proposing modifications on it.”

But what Mundy is most worried about is FEMA going house to house to determine flood risk and individual premiums. His distrust of the federal agency is being shared by Mayor Carmen Amato of Berkley Township, New Jersey, who in an email to fellow state officials communicated how “outrageous” increases in flood insurance rates would negate much of the progress made by maritime communities in the wake of Superstorm Sandy.

Mundy added: “FEMA is the most dysfunctional organization that I have ever worked with, and I have worked with every organization and every acronym in the seven years since Sandy. I’ve never met one that’s more out of touch with local authorities and local homeowners than FEMA.

“The idea that not only are they going to remap entire areas like Broad Channel and Howard Beach, but they’re going to do it on an individual basis leaves the opportunity for them to make more mistakes than the ones that already exist. It scares the crap out of me. As an individual, to fight against FEMA, you’re at a loss.”

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