In case you have not been following the comments section of one of my posts on HR 3370, we received some feedback from the staff of Congressman Michael Grimm (R-NY) that is very helpful. Congressman Grimm was one of the authors of HR 3370 and helped build the coalition that got this thing through.
First, relative to my urging everyone to get to their insurance companies ASAP. My belief was that it was a necessity before July 16th. It turns out it is not a necessity as noted below, but highly encouraged.
“As far as buying before or after a new map goes active I would still advise buying before and grandfathering rather than waiting for the new map to go into effect and taking the preferred risk option with the phase up. The grandfathering option provides a lot more certainty and is what we are pushing in our district (NYC is going through its first remapping since the FIRM was put in place in 1983.)”
I also had this discussion last week with our local FEMA insurance representatives. They do state get your insurance before July 16th, but did acknowledge that this was not a requirement. It would appear that there are financial advantages to acquiring your flood insurance before July 16th. Rates are adjusted in October. If you acquire flood insurance before July, your first renewal will be at the a lower rate than if you wait until after July 16th. According to our local NFIP office it would appear that you will also be buying yourself a full year before the rate increase phase in begins.
I also had raised questions regarding lapsed insurance. The answer below helps tremendously.
“As far as lapsed polices it matters whether we are talking pre-FIRM or post-FIRM. A pre-FIRM lapse under the way we treat lapse in amending Biggert-Waters(BW12)is lapse do not matter to restore pre-FIRM subsidization so long as the lapse was caused because the owner was no loner required to carry (mortgage paid off etc..) (however FEMA has said back channel they have NO idea why a lapse occurs and therefore will have to treat all lapses as qualifying for relief, at least for the time being). For a post-FIRM you have two grandfather options a) buy before new map b) prove the building was built to the FIRM in place at its time of construction.”
Overall, the more we learn, the more we see protections for Dennis residents.