Local attorney Russell Yagel from Hershoff Lupino & Yagel, L.L.P. has been kind enough to provide this summary:
Summary of rate changes being implemented under the NFIP
Russell Yagel / Hershoff Lupino & Yagel, L.L.P.
Already underway:
- Full-risk rates now are being applied to newly purchased property, to property not previously insured, and to policies that are re-purchased after a lapse.
- Premiums for older (pre-FIRM) non-primary residences in Special Flood Hazard Areas will increase by 25% annually until they reflect the full-risk rate.
Beginning October 2013,
- Premiums for pre-FIRM business properties, severe repetitive loss properties (1–4 residences), and properties on which claims payments exceed fair market value will increase by 25% annually until they reflect the full-risk rate.
- Routine rate revisions will include a 5% assessment to build a catastrophic reserve fund.
Anticipated late in 2014,
- Premiums for properties affected by map changes will increase by 20% each year to reach full-risk rates.
Who won’t be affected:
- Owners of primary residences in SFHAs (Special Flood Hazard Areas) will keep the subsidized rates until the home is sold; the policy is allowed to lapse; a new policy is purchased; or a string of severe losses is experienced.
- Post-FIRM rates for all zone classes will be unaffected by Section 100205 of the Biggert-Waters Act.
To contact Russell Yagel:
Hershoff Lupino & Yagel, L.L.P.
www.tropicalaw.com
90130 Old Highway
Tavernier, Florida 33070
305-852-8440