According to a recent article recent changes to the National Flood Insurance Program (NFIP) may actually translate into fewer flood insurance policies purchased by consumers. This is important news for restoration contractors as it could affect their workload and revenue in flood-ravaged areas.
Washington actually passed legislation last year as part of the Biggert-Waters Flood Insurance Reform Act of 2012 that ended long-standing subsidies and put in place plans to increase premiums by approximately 25 percent to make the program viable.
Additionally, the agency is working with local officials across the nation to revise the flood zone maps. The issue with the revised flood zone maps and increased premiums is that many homeowners that currently carry flood insurance may elect to drop the coverage as they feel they no longer need it.
We are encouraging our restoration contractor clients to tell consumers not to drop the coverage. Just because they no longer live in a flood zone does not mean they aren’t susceptible floods and the property destruction that comes with it. “There is no such thing as a zero flood risk,” said Lynne McChristian, the Florida representative for the Insurance Information Institute, “Low-to-moderate does not mean zero. Flood insurance is something everyone should consider.”