By KIMBERLY ACEVEDO
It's in the budget and the budget hasn't been passed yet, Denis A. Miller of Denis A. Miller Insurance Agency Inc. This is directed primarily at secondary residences and seasonal homes.
Since most but not all residents on the Long Beach barrier island are primary holders, the over five-year discount insurance rates won't affect them. But experts say residents should be concerned with the ever increasing flood premiumsno matter how small.
While the National Flood Program is a tremendous service, they are losing money, Miller said. With areas in the Midwest that constantly flood, the National Flood Program is paying out more than they are taking in.
Three years ago, the agency eliminated the three-year flood policy. Instead of paying on a year to year basis, policy holders had an option to pay three years in advance. During the three years, the agency couldn't increase ratesresulting in a loss.
I think they are going to come back with the three-year flood policy because it's kind of backfired on them, Miller said. As a convenience, many people used the three-year flood policy, even if they weren't required to carry it, Miller said.
Each year the National Flood Program has raised its ratessometimes even twice in one year. Although the rates are only increased in small incrementstwo to three percenteveryone is affected. Flood insurance rates have increased three percent from last year and another is scheduled this May, but Miller said it's not going to be significant, it's going to be minor.
Flood insurance rates are based on a community's rating. In Long Beach, and most of the surrounding area, the rating is ten. By lowering the community rating, flood insurance rates would drop, Miller said, but it takes a lot of paper work. In Freeport, which floods frequently, the village worked with FEMA to meet flood protection standards and have since lowered their community rating to eight. But it's very difficult to lower a community rating, Miller said.
On the Long Beach Barrier Island there are two flood zones. An AE flood zone is a special flood hazard area where flood insurance is mandatory. AE is classified as an area that is in the hundred-year flood plan. Meaning, the area has a one percent chance of flooding each year, Miller said. That's a pretty high risk. In a preferred flood zone, known as BC or X, flood insurance is not mandatory.
In the second part of the Bush proposal, although just a suggestion, including erosion rating in flood insurance policies is a possibility. Building factors that surround erosion rating is difficult and many insurance agents know very little about it, Miller said.
They don't have an exact science on how they are going to do this yet but erosion rating is something that they would love to do because it will only increase premiums.
The flood zone was changed in Long Beach and the surrounding areas including the Town of Hempstead on April 2, 1997. This resulted in more homes falling into the AE category. In 1972, the base flood elevation changed from seven feet to ten feet. In other words, all homes built prior to 1972 had to be seven feet above sea level but homes built after had sit ten feet above sea level.
Since the flood zones were changed in 1997, Miller said areas such as Long Beach, Lido Beach, Point Lookout, East Atlantic Beach and Atlantic Beach won't be greatly affected by the proposal.
But as for erosion rating, Miller feels that it could be up in the air.
