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April 1st, 2015


Contact: Amanda Edwards
& E Insurance Agency



What Property Owners should know

about Flood Insurance Changes ---

New Flood Insurance Rules Start today!


It’s going to Cost More -NJ Property Owners woke up today to New Flood rules and surcharges starting today April 1st 2015. 
If you own Property in the United States and have a Flood Insurance Policy, today April 1st your Flood Insurance rates have went up.

No this isn’t some April Fools Joke ! But someone in Washington DC must have a warped sense of Humor as Uncle Sam could have picked a
better date to do this, like April 2nd or March 31st, So NO there isn’t a joke here. Flood Insurance rates are going higher,
Period. And as a New Jersey Homeowner effected by Hurricane Sandy, it’s an especially irritating as the summers is creeping
towards us and many homes still haven’t been rebuilt.


The National Flood Insurance Program has enacted new surcharges based on

The Homeowners Flood Insurance Affordability Act of 2014 (HFIAA).

Mr. Ernest Caponegro, President and Owner of I & E Insurance Agency of Point Pleasant commented on the new changes. “Homeowners and
Property Owners across the board will see costs go up as the Federal Government raises rates to offset serious losses over
the last few years.” He added “Homeowners need to prepare themselves and find ways of cutting down this expense.  Getting angry about it or ignoring the
facts won’t help. So get out your policy Call your agent and see what you can do to minimize the increase."  Mr. Caponegro added, " One thing that will help,
make sure your property has a Flood elevation certificate applied to your policy and think about raising your deductions. Again call your agent and ask for their guidance and help.
If they cant help you, then its time for a new agent!
This problem isn’t going away anytime soon.”


New charges include:


1)      Primary residential surcharge $25.  This includes Single Family and Condo Units including preferred policies.

2)      Non-Residential surcharge is $250.00 charge for single family and condo

3)      Multi-Family Residential $250.00 includes condo and other buildings.

4)      Non Residential $250.00


Primary Residence Verification


Previously indentified when customer occupied residence at least 80% of prior year,

But as of 4/15/2015 customer must occupy more than 50% of the time.


To verify FEMA requires one of the following:  - Current Drivers License-Auto registration- Auto Insurance proof- Voter registration - Children’s school attendance-
Homestead Tax form for primary home--NFIP Primary Residence Verification Form.


New Maximum Deductibles

HFIAA has increased the deductible to a max of $10,000 for Single and Two and 4 Family dwellings-Must apply to both property and content. 
Customer’s responsibility to check with Mortgage Company for approval 


Average Annual Flood premium increases will be limited to 15% for each class of risk.

Average Pre-Firm subsidized policy increase will be at least 5%


18% Maximum Increase for any Individual Policy. And the Federal Policy fee has been increased to $45!


In summation, like everything else we buy, The Government may say there is no inflation, but all around we see prices going up. And like that proverbial pound of coffee
that used to be 1 pound but has shrunk now to 13oz, we get less for our money,
The New Flood deductible is up 25% to $1250 from $1000 so make sure you read the fine print. Ask your agent to explain all the details!

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