Grandfathering is a NFIP rule that was created in order to recognize property owners who carried a policy before flood maps became effective to the correct standards relative to the map at the time of construction. Structures built before the first Flood Insurance Rate Maps (FIRM) have and maintain flood insurance policies when new flood maps become effective. Structures built after the FIRM maintain continuous flood insurance coverage. Congress is working on the reauthorization of the policy of grandfathering, specifically when the property is re-mapped into a higher-risk flood zone. The insurance program’s practice of grandfathering premiums – which allows homeowners to continue paying relatively low insurance rates even when FEMA changes
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People with grandfathered rates are not being charged for the actual risk of flooding but for the risk before the flood zone was mapped (and updated). It is unfair to those who live in households that live outside floodplains. Through their tax dollars, they are subsidizing a number of homeowners who own property near coasts, lakes, and other water areas. Legislation needs to create an effective change so that flood insurance is fair to all people. There are many people who should be paying more for insurance and others who should not be paying it at all. The main issue is how it is a waste of thousands of dollars. Representative Sean Duffy made a fair point and said, “this legislation is based on the principle that people should approach home purchases knowing that insurance conditions could change.” He went on to compare it to a consumer buying car insurance, they know that premiums could go up if a teenager is added to the policy (Source 2). The benefits to a change in the grandfathering policy is that not only will households that live outside floodplains benefit, there is more awareness brought to those who live in areas with high flood risk. With annual updates on zones at risk, homeowners have the opportunity to reevaluate their living
People with grandfathered rates are not being charged for the actual risk of flooding but for the risk before the flood zone was mapped (and updated). It is unfair to those who live in households that live outside floodplains. Through their tax dollars, they are subsidizing a number of homeowners who own property near coasts, lakes, and other water areas. Legislation needs to create an effective change so that flood insurance is fair to all people. There are many people who should be paying more for insurance and others who should not be paying it at all. The main issue is how it is a waste of thousands of dollars. Representative Sean Duffy made a fair point and said, “this legislation is based on the principle that people should approach home purchases knowing that insurance conditions could change.” He went on to compare it to a consumer buying car insurance, they know that premiums could go up if a teenager is added to the policy (Source 2). The benefits to a change in the grandfathering policy is that not only will households that live outside floodplains benefit, there is more awareness brought to those who live in areas with high flood risk. With annual updates on zones at risk, homeowners have the opportunity to reevaluate their living