After a decade of disastrous hurricanes and floods along the eastern and southern coasts of the United States, FEMA is flooded in debt, and that's going to lead to higher insurance costs for Batavia residents.
Assistant City Manager Gretchen DiFante said that as many as 300 local property owners are being hit with flood insurance premium increases of up to 18 percent, plus a new fee designed to circumvent a Congress-imposed cap on rate increases.
The good news is, the city can help, DiFante said.
Properties in the city's designated floodplains that were developed prior to 1982 may be eligible for a reevaluation of their flood status by going through a process that will yield flood elevation certificates.
In some cases, the properties may be taken out of the 100-year floodplain, significantly reducing insurance costs for those property owners.
The city is also working with FEMA on getting a community rating, which could reduce local premium rates across the board.
The number of points -- more points, lower rates -- that will be awarded to the city won't be know until mid-June, a month after a scheduled FEMA audit of the city's flood preparation efforts.
FEMA is $24 billion in debt after paying out on insurance policies in flood-ravaged areas of the U.S.
Many of the policies were subsidized by FEMA, which just meant reserve funds for payouts were even lower than if not subsidized, and the subsidies have just encouraged development in flood-prone areas.
In response, Congress authorized rate increases, and then pulled back after fielding constituent complaints, capping the rate increase to 18 percent.
FEMA subsequently came up with the $25 annual surcharge, but that surcharge is $250 for multi-dwelling properties and properties that are not owner-occupied.
The most immediate form of insurance relief for local property owners is getting an elevation certificate.
The engineering study costs money, but there are grants available through the city for low- and moderate-income propery owners.
While subsidized policies -- which property owners without the certificates are usually receive -- cost less in theory, the certificate can still mean lower rates.
If the certification process doesn't lower rates, insurance companies are legally bound to offer the lower rate -- subsidized or tied to the certificate, whichever is lower.
"The only risk is the cost of having it done because it may not move you at all, but it's not going to go up," DiFante said.
If you have questions about your flood insurance, call Gretchen DiFante at (585) 345-6330.
Our news partner WBTA contributed to this report.
"After a decade of disastrous
"After a decade of disastrous hurricanes and floods along the eastern and southern coasts of the United States, FEMA is flooded in debt, and that's going to lead to higher insurance costs for Batavia residents."
Can you tell me why Batavia residents should have to pay for this? It`s ridiculous that Batavia has any mandatory flood insurance in the first place say nothing about increasing the rates!! When is the last time there was a flood in Batavia? Those floodzone maps are completely outdated. Why should a resident of Batavia be forced to pay for someone living on a coast to rebuild in the same flood area? Why would you want to rebuild there and have it happen again? If you are flooded out and want to rebuild in the same spot again it should be out of your own pocket!
Jim. As far as I know, it is
Jim. As far as I know, it is not mandatory to carry flood insurance - at least, it's not (mandated) by the city, county, town, state or federal gov't.
Now, it may be required by any entity (bank, holding company, etc.) which holds a 'note' on your home, but, if you outright OWN your place, it's totally up to you whether you insure it. (It's sort of like when you buy a car - if you pay cash for it, you have the choice of buying collision insurance. If the bank is backing your loan, though, they require you to have collision.).
Well most people don`t own
Well most people don`t own their place outright and are making payments still and are being forced to have flood insurance in areas of the city that have no chance of being flooded. Still my question is why should a resident of Batavia have his rates raised to pay for somebody living in a different part of the country living in a flood zone to rebuild in that flood zone and possibly have it happen again? How about moving them out of the flood zone or rebuilding with their own money!
I find it hilarious that
I find it hilarious that every time I post a comment it gets a wave of - votes! Anyone that thinks that is a negative comment obviously must not be paying flood insurance or care about your fellow Batavians who do getting ripped off!