house floodIf you’re living on the Outer Bank, or thinking about living on the Outer Banks, the recent changes in Flood Insurance has been a roller coaster. Now that the dust has settled, premium payments have finally been hammered out.

Buyers of older properties (“pre-FIRM”) will see a decrease in their insurance premium rate under the Homeowner Flood Insurance Affordability Act of 2014. Rates will not increase to the “full cost” for their flood insurance as projected, but will “assume the seller’s Oct-2013 rate for a pre-FIRM property,” according to the National Association of REALTORS®.

FEMA said rates will not increase at this time for all pre-FIRM properties – this includes 2nd homes and businesses and will in fact be paying October 2013 rates when properties are purchased or their insurance renewals come around after May 1st.

According to a recent article by the National Association of REALTORS®:

  • ALL buyers of a pre-FIRM property, not just those whose seller has an existing policy;
  • ALL recent owners who apply for a new flood insurance policy on a pre-FIRM property;
  • ALL recent owners who reinstate an old pre-FIRM policy that previously lapsed for any reason;
  • ALL recent owners who renew a policy on a pre-FIRM property bought or newly insured after the 2012 Biggert-Waters law.

AND FEMA MUST issue refunds to policy holders who paid more than their October 2013 premium.

Click HERE for the FEMA Homeowner Flood Insurance Affordability Act OVERVIEW.

What does this mean for you? If you’re selling your home on the Outer Banks, you will need to disclose. If you’re the buyer, your lender may require flood hazard insurance to purchase the property. It is up to the buyer to find out if the property is in the Special Flood Hazard area by contacting  the Federal Emergency Management Agency at Information about the state of North Carolina’s Floodplain Mapping Program is available online at

This can all be confusing and frustrating, but that is why I’m here. I have kept up with what is going on with the Flood Insurance changes and how it impacts the purchase or sale on the Outer Banks.

Let me help you! Contact me today!

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