To the Scrap Pile for Biggert Waters

by Jul 24, 2015

Home Page » To the Scrap Pile for Biggert Waters

Flood Insurance changes with the tide.

Under the Biggert Waters Act, new owners have to pay adequate actuarial rates. With the new rules, the change in rates will provide a gradual easing of rates for new owners until they reach the rate adequate premium.

Annual increases formerly 20%, are now between 5% and 18% and apply only to primary residences. There is no documentation on how the range of increases will be applied.

Secondary residences do not get the benefit of this reform.

The increase in rates will be 25% for non primary residences or those properties deemed to be severe repetitive loss properties.

In addition to rate increases, the new rules establish a surcharge for all homes built prior to the first flood map (Pre-Firm) which is 1974, of $25 for primary homes and $250 for Secondary or Seasonal.

Provides for refunds for those affected with large increases under Biggert Waters if the new rules result in a lower premium.

With so much confusion, we have not heard the last of this issue and the dollars that will flow to the federal deficit as a byproduct.

If you have questions email Kyle at or call 203.698.9342.

Written by: Steve Shepard

Founder/Principal, Shepard Insurance Group. At Shepard Insurance Group we begin every relationship with a face to face meeting with the client. In a comprehensive discussion of coverage needs, personal concerns, objectives and finally appetite for risk, we can arrive at the proper insurance solution. Understanding the client is the first step to accurate execution.

July 24, 2015

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