The Federal Emergency Management Agency has announced it will delay flood insurance rate increases on properties that have been “grandfathered” for as much as two years. Grandfathered properties are those that have had continuous policies that were in effect prior to the recent post-Sandy elevation and zone changes to the agency’s flood maps used in determining the premiums set by the National Flood Insurance Program (NFIP). Prior to the announcement, grandfathered rates were scheduled to increase beginning in October. Properties that change ownership, experienced “substantial damage” recently and second homes do not qualify as grandfathered. “Substantial damage” in most cases means a home sustained more than 50% of its assessed value in damage from Sandy or other causes.
Manasquan Patch February 10, 2014
For more information on the “grandfather” clause. Visit the FEMA web site at:
http://www.floodsmart.gov/floodsmart/pages/search.action?utf8=%E2%9C%93&affiliate=floodsmart&q=grandfather+rule
