Congress is unlikely to reach a long-term agreement on the National Flood Insurance Program (NFIP) before the program expires on Sept. 30th. The debt-strapped program covers flood damage not typically covered by standard homeowners' insurance—a classification to which many homes and condos in Ocean City belong.
The National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency (FEMA), which works closely with nearly 90 private insurance companies to offer flood insurance to property owners and renters. In order to qualify for flood insurance, a community must join the NFIP and agree to enforce sound floodplain management standards. The NFIP, in turn, offers flood insurance, which is purchased through your local insurance agent. Rates do not vary from company to company; however, the particular rate any given homeowner pays does depend on many factors, which include the date and type of construction of your home, your home's elevation and the amount of flood vents you have.
Since standard homeowners insurance doesn't cover flooding, it's important to have protection from the floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact the U.S., as we've witnessed recently with the devastating effects of Hurricane Irene. Experts believe that lawmakers will reach another temporary fix for the federal program, but temporary fixes have kept the NFIP going since 2008. The U.S. House already has passed a measure that would enable the program's premiums to rise up to 20 percent annually and make other changes to the program to improve its solvency.
FEMA is currently updating and modernizing the nations Flood Insurance Rate Maps (FIRMS). These digital flood hazard maps provide an official depiction of flood hazards for each community and for properties located within it. The Town of Ocean City and other area towns, including Berlin and Snow Hill, are scheduled to receive their preliminary Digital Flood Insurance Rate Map in the spring of 2013.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
