When Congress extended the National Flood Insurance Program last year, it enacted several changes that could have a devastating impact on both Florida and Pinellas County. According to St. Petersburg attorney Jessica Ehrlich, the changes also eliminate support for middle class families.
She is now circulating an online petition calling on U.S. Rep. Bill Young to “fix” the bill during a one-year moratorium on the rate increases which would take effect October 1.
Democrat Ehrlich is running again to unseat Young in 2014 for Florida’s 13th congressional district, which covers much of Pinellas County. She lost to Young in 2012, who won his 21st term in Washington D.C., making him the longest-serving Republican member of Congress.
In July 2012, Young voted for the Biggert-Waters Flood Insurance Reform Act. Some of the main provisions of BW-12 require the NFIP to raise rates to reflect actual flood risk, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders.
The result will be premium rate increases for some — but not all — policyholders over time. In addition, BW-12 does away with “grandfathered structures,” making it so buildings below the current or future Base Flood Elevations (BFE) will be involved.
More than 50,000 of the 142,000 properties in Pinellas County with flood policies have subsidized flood rates, making it the No.1 County in the nation modified by BW-12.
The most widespread price increases will be in subsidized properties in high-risk flood zones, which could see jumps as much as 25 percent annually, while those changing from a BFE of +1 to a BFE of -1 could have their flood insurance rates skyrocket by as much as $5,000.
Ehrlich joins many Pinellas County real estate agents who worry the changes will result in falling property values, and slowing home sales that will cripple the local economy. Homeowners in flood zones could default on mortgages, leaving banks with worthless assets.
In an email with the subject line “We just can’t afford it,” Ehrlich called on supporters to sign the petition, saying changes in flood insurance will affect every business and home in the district. Since she grew up in Pinellas County, Ehrlich says wants to make sure “Pinellas is a place our kids can still afford to live in.”
Ehrlich writes:
Imagine flood insurance rates going up by 50%, 200% or even more. Would you leave your home? Cut back on groceries? Dig into your savings account? It’s enough to blow up any middle class family’s budget, and no place will be impacted more than Pinellas County. It’s not right, it’s a mess Congress caused, and now Congress needs to clean up.
Ehrlich continues by saying Young has been “silent” on fixing the bill, and she calls for Congress to take a one-year delay in enacting the changes. That should give legislators enough time to amend the bill to prevent raising flood insurance premiums on Pinellas families.
To read (or sign) Erlich’s petition, visit this link.
