Crucial Information regarding changes IN FORCE for the National Flood Insurance Program
February 20, 2013 By Ilona
For the last several years the National Flood Insurance Program (NFIP) has experienced periods of expiration and availability of issuance policies. Each time Congress would pass a temporary bill extending the program for another short period. Finally a bill was introduced that would extend the program for 5 years and not have these continued interruptions. What we didn’t know existed in the several thousand pages of The Biggert-Water Act of 2012 were the changes in premiums and coverage that I will highlight below.
- First, these changes are not being imposed by FEMA or by the NFIP. These are legislative changes from Congress that can be undone by Congress with the right voices being heard.
- Starting January 1, 2013, any non-primary resident home that was built before flood maps were instituted (this is called Pre-FIRM) will see an increase in their premiums as the “discounts/subsidies” are removed.
- Starting August 1, 2013 commercial properties will have their subsidies/discounts removed and the new premium in place 25% per year for 4 years. For example, if the NEW, non-discounted premium is $5,000 per year and the old premium was $500 per year, the difference is $4500. The increase of the $4500 will apply 25% at a time over the next 4 years until the full premium of $5,000 is paid.
- Starting August 1, 2013, subsidies will be similarly phased out at 25 percent a year for severe repetitive (more than 4 claims) loss properties consisting of 1-4 residences, and properties that have incurred flood-related damages where claims payments exceed the fair market value. FYI – Severe Repetitive Loss means four or more claims payments of over $5,000 or two claims that exceed the value of the property.
- New policies written on pre-FIRM buildings (primary or non-primary residence) due to a sale or deliberate lapse will be issued at full-risk rates. THERE IS NO MORE GRANDFATHERING! Prior to the bill being passed, the flood map zone in effect at the time of construction remained with the house when it was sold.
- Beginning in 2014, premium rates for other properties, including non-subsidized properties – such as PRIMARY RESIDENCES AND SECOND HOMES BUILT AFTER 1974 – will increase as new or revised flood maps become effective. We are expecting new flood maps the latter part of 2014. This is not far off folks!
- Full risk rates will be phased in at 20% a year for five years for these properties. While FEMA works through the grandfathering issue on primary residences, they have removed the 2-year policy limit for the Preferred Risk Policy Extension until the new rates are implemented.
- When new flood maps become effective, they will include a rating for a new zone – a Coastal A Zone. This zone will affect areas behind the V-zone and other areas that experience a limit of wave action from 3 ft. to 1 ½ ft. For insurance purposes, a policyholder pays to the zone that touches his structure.
- Increases the limit for annual rate increases within any risk classification of structures from 10 percent to 20 percent. This means they can now raise your premium by 20% a year, anytime they deem necessary.
- Minimum annual deductibles on claims are changed to $1500 for coverage up to $100,000 and $2000 for coverage over $100,000 for pre-FIRM properties, and $1,000 and $1,250 for below and above $100,000 coverage for post-FIRM properties.
- Requires FEMA to notify property owners when their properties are included in, or are removed from, an area covered my mandatory insurance purchase requirements. Also requires notification of Senators and House Members whose States or Districts are affected by map changes.
- The Biggert-Waters Act of 2012 was included in H.R. 4348 – Surface Transportation Act found at http://www.gpo.gov/fdsys/pkg/BILLS-112hr4348enr/pdf/BILLS-112hr4348enr.pdf starting on page 512.
- You can help a Non-Profit coalition spearheading a movement on revising this bill by taking a quick survey about your current insurance http://www.uphelp.org/home-insurance-cost-and-quality-survey Your help is greatly appreciated!
These changes, if left in place, will have an impact on the local value of your property during a re-sale on the Outer Banks.
Please contact me with any questions you have regarding this. You can also contact your insurance agent to find out exactly what changes you can expect to your specific premiums. If you need information for another insurance agent, I’ll be happy to share the name of a trusted professional I work with regularly.
Best Buys for the week of February 18th
February 19, 2013 By Ilona
Contact Me About Any of These Properties!
Best Buys for the Week of February 11th
February 12, 2013 By Ilona
Contact Me About Any of These Properties!
January Snapshot for the Outer Banks
January 30, 2013 By Ilona
After coming off such a strong year in 2012, I’m sure you’re wondering how things are going so far in 2013. Here’s a snapshot of what’s been happening on the Outer Banks for January.
- Surprise! No news to report on the Mid-Currituck Bridge
- Actual Surprise – It SNOWED! It’s all gone now, but it was fun for a day
- The Great White Shark Mary Lee was cruising around Hatteras
- I was named Beach Realty’s 2012 Agent of the Year
- Sales for January have been STRONG. Over 50 properties CLOSED so far
- Over 200 properties have already had a price adjustment in January
- Nearly 200 new listings came on the market
- When priced correctly multiple offers are coming in!
- When priced correctly properties are selling within 30 days of listing
Last year I predicted the sales for 2012 would increase 15%. The actual number was 21%! It was even better than I thought. This year I predict a similar trend. With the activity in the market so far we should easily exceed the number of sales over last year again. I also predict we will see a stabilization in pricing…no real movement up or down.So here’s the question…how can I be of help to you this year? What is your strategy for making the most of the 2013 market? What are your thoughts on how this year is going to play out? I’m interested to create this dialogue with you, so I can be sure to provide you with the most relevant information.
Stay warm and talk soon!
Best Buys for the Week of January 28, 2013
January 28, 2013 By Ilona
Contact Me About Any of These Properties!
2012 Agent of the Year
January 23, 2013 By Ilona
Beach Realty & Construction / Kitty Hawk Rentals
2012 Agent of the Year – Ilona Matteson
Ilona Matteson, associate broker for Beach Realty & Construction / Kitty Hawk Rentals was named the company’s agent of the year for 2012. Ilona was licensed in the late 1990’s and became sales manager for Beach Realty in 2002. In 2006, she moved to Richmond, VA and was affiliated with a national coaching company where she excelled as a one-on-one coach for real estate professionals. The allure of the Outer Banks brought her back to the beach and she resumed her career in real estate sales. She quickly became a top producer and attributes her success to hard work, discipline and an in-depth knowledge of the local market. Along with her successful career in real estate sales, Ilona Matteson also offers training and coaching to the sales team at Beach Realty & Construction.
Sales Manager Beth Urch says, “Ilona is an integral part of the Beach Realty sales team. She brings a level of integrity and professionalism to the business that her clients and peers appreciate. She is a valuable resource for our sales team and is instrumental to the company’s success.”
You can reach Ilona Matteson in the Duck office of Beach Realty & Construction / Kitty Hawk Rentals at (252) 261-6600 or email [email protected].
Beach Realty & Construction/Kitty Hawk Rentals is a full-service real estate company offering an attractive and ethical environment for licensed real estate professionals to realize a successful career. For more information about joining the Beach Realty Sales team contact Sales Manager, Beth Urch at (252) 261-3815 or [email protected].
The Secret Formula
January 22, 2013 By Ilona
It’s been a while since my last personal blog. That’s for many reasons. First, I hate to write. Second, I have been busy. Third, I hate to write. (See Adam, it’s not just running I hate.) I’m sure I could have found the time if I really wanted to. I just didn’t make it a priority. It’s interesting what we CAN do when we make it a priority.
Last night I graduated I think my 5th or 6th Bootcamp. I’ve lost track. After getting into a routine with Charlie and letting my hip injury heal I decided to get back in and signed up for the Night Camp. Wow, what a great decision! All through the holidays I had something more to keep me on track. And I actually did a pretty good job!
For the two months I took off I gained no weight! I was thrilled. I was also worried that I had lost my momentum and this next camp would be like starting over. Boy was I wrong. It’s a combination of mental and physical breakthroughs. After running the half marathon, I actually believe now that I AM a runner. That was step 1, belief. Step 2, physically doing it, came on the first night of the camp when I look around at mile 2.5 and I’m still in the front group. I was amazed. Normally I’m the first person of the back group. The front group always a good 100 yards in front of me. Not this time. I was the last person in the front group! Woo Hoo!
That alone gave me a shot of confidence so big I felt I could take on the world! Not to mention, I’ll never get tired of hearing how skinny I look when I see someone I haven’t seen in a few months! That’s a good booster there too. So with this renewed confidence I saw myself doing things with ease that 6 months before I struggled with. My physical ability had gone to the next level.
Now, the most important lesson here is this…it started in my mind first. The truth is, I was probably physically capable of many of these tasks 2 months ago, but I didn’t believe it yet. It took my mindset shifting before I really broke through. Now I see why it was so important to Matt that I run that half marathon. I’m just going to have to get him a keychain that says “you were right again” as I keep finding myself saying that to him. One day, I’ll stop questioning and just start doing!
So back to the lesson…all of my mentors, all the self help books, even the bible talks about how (whatever you want to do) is not possible if you can’t first believe it can be done. You have to believe it to achieve it. I’ve known this for years, yet still didn’t apply it in my fitness life until now. I’ve been telling Charlie for months now that he has two choices…he can believe he’s going to live or believe he’s going to die. Everything else will respond to and fall into whatever belief he chooses. Ever notice how it’s always so much easier to give advice than take it?
For the second time this month I was given an achievement award. Last night Adam surprised me with the Honor Graduate dog tags. Earlier this month I was awarded Agent of the Year at Beach Realty for 2012. In both cases I really worked hard. I really wanted to excel. I made it a priority to do so. And I believed it could be done. So there you go folks. There’s the “secret” formula for success.
This year I plan to lose 30 pounds. I will fight in an amateur kickboxing fight. I will earn a yellow shirt, (maybe even a black one) at Bootcamp and I will sell 40 houses on the Outer Banks. How can I be sure? Because I will follow the formula.
- I will work HARD. It won’t be easy. If it was easy, everyone would be doing it.
- I’ve set goals I really WANT to achieve.
- I’ve made a schedule that allows the work required to be a priority.
- I have no doubt these things are possible if I follow 1 through 3.As with any great achievement, it isn’t done alone. I want to thank those who helped me get there and also say, I’m counting on you big time this year!
- Matt Costa – Head Coach and my Fight Trainer
- Adam Swansen – Bootcamp Coach and fitness “Pusher”
- Jay Bowman – Bootcamp Coach and all around Inspirational Guy
- Re – Bestest Friend and excellent cheerleader
- Lisa – Best Friend and excellent cheerleader
- Ann Baker – Best Real Estate Coach EVER!
- Kimberly, Jean, Beth and Kari – Beach Realty Gals and Lifeline
- Mom – Well, that’s obvious – the giver of life and creator of my moral foundation
- Charlie – For your patience and courage. You inspire me every day to keep going!
Major changes coming to the National Flood Insurance Program
December 20, 2012 By Ilona
There are major changes coming to the National Flood Insurance Program in 2013 and it seems second homes and vacation homes are the primary target. If your home falls into certain criteria be prepared for discontinued subsidies and ultimately an increase in your premiums.
Another point of interest in relationship to this is the plans from CAMA to re-map our area effective in 2014. This will directly impact what flood plain a home falls into and in the end the flood insurance premium paid.
I’ll report updates and new information as it becomes available.
The following was taken from a newsletter provided by the local Outer Banks Association of Realtors.
MAJOR CHANGES TO NATIONAL FLOOD INSURANCE PROGRAM
Below is additional information from last week’s briefing about new legislation that may affect flood insurance policy rates for home and business owners in your community. The Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) requires FEMA to take immediate steps to eliminate a variety of existing flood insurance subsidies and calls for a number of changes in how the program operates. The new rates will reflect the full flood risk of an insured building, and some insurance subsidies and discounts will be phased out and eventually eliminated. Rates on almost all buildings that are, or will be, in Special Flood Hazard Areas (SFHAs) will be revised over time to reflect full flood risks. Based on various conditions set forth in the law, subsidies and grandfathered rates will be eliminated for most properties in the future.
Effective on January 1, 2013, flood insurance policy rates for some older non-primary residences in SFHAs that received subsidized rates based on their “pre-Flood Insurance Rate Map” (pre-FIRM) status will increase by 25 percent a year until they reflect the full-risk rate. A pre-FIRM building is one that was built before the community’s first flood map became effective (1974) and has not been substantially damaged or improved. If the building will be lived in for less than 80 percent of the policy year, it is considered to be a non-primary residence. Click here to read a National Flood Insurance Program (NFIP) bulletin that provides additional details around the legislation.
Effective August 1, 2013, the NFIP will also begin eliminating subsidized premiums for other buildings as mandated by Section 100205 of BW-12. Click here to read the full bulletin and note that key changes include:
• Subsidies will be phased out for severe repetitive loss properties consisting of 1-4 residences, business properties, and properties that have incurred flood-related damages where claims payments exceed the fair market value of the property.
• Properties with subsidized rates will move directly to full-risk rates after a sale of the property or after the policy has lapsed.
• NEW policies will be issued at full-risk rates.
• Policyholders should be aware that allowing a policy to lapse could be costly. A new application will be required and full-risk rates will take effect.
Beginning in 2014, premium rates for other properties, including non-subsidized properties, will increase as new or revised flood insurance rate maps become effective and full risk rates are phased in for these properties. These premium rate increases will include properties in areas that have received new or revised flood insurance rate maps since July 6, 2012 (the date of enactment Changes in the Flood Insurance Program Preliminary Considerations for Rebuilding – Early Considerations for Rebuilding of the new law). Additionally, even if you build to minimum standards today, you will be subject to significant rate increases upon remapping if your flood risk changes in the future.
Important Note on Preferred Risk Policies (PRPs) As of January 1, 2013, PRPs issued on properties located in a high-risk area may continue beyond the previously designated two-year period until FEMA completes analysis and implements a revised premium structure put in place with BW-12. For some policyholders in areas flooded by Sandy, the impact of these changes could be substantial. For this reason, the Federal Emergency Management Agency (FEMA) encourages property owners to consider flood insurance costs when making decisions about how high to rebuild. A brochure that details some of the legislation’s impacts on building is also available here. Scroll down and click on the download/print link.
For More Information: For the latest NFIP Bulletins about the implementation of these changes, visit www.nfipiservice.com/nfip_docs.html. For more details about flood insurance, visit http://www.floodsmart.gov/floodsmart/.
Thankful on the Outer Banks
November 21, 2012 By Ilona
This month’s update is pretty bland compared to some of the things happening in recent months. There are no insurance rate hikes, no damaging Hurricanes, no bridge news…only good news this month!
While a good portion of our beaches were damaged during Sandy, we still remain extremely fortunate not to have received a direct hit. As is typical on the Outer Banks, most everything is cleaned up and businesses affected are back up and running. We do tend to recover from these things pretty quickly and that has certainly been the case with Sandy as well.
Since we have been through this so many times, it was an interesting change to see the 2 HUGE trucks of supplies that our Outer Banks locals sent to New Jersey to help out Sandy victims in that region. Even though we are a small community, when we come together we accomplish big things. I hope if you were affected by Sandy your situation is on the mend or fully recovered.
On to the news in the marketplace. Sales activity for 2012 is up so far this year 21%. Land sales lead the way with the biggest improvement. Inventory is down 4% so far this year. This is a move in the right direction…more is needed.
The most popular selling price range is still $200K to $299K. However, surprising enough so far 50 homes sold in the $1M or more price range, with an average time on market of 186 days! That’s definitely good news.
Distress activity remains the same. There does seem to be a small decline in foreclosure filings when looking at the data over the last several months. The biggest challenge with distress properties is that the median sales price for them DROPPED 22% this year so far. When these homes become your competition, that means a drop in price for regular sales as well, albeit generally not as big a drop.
One last tidbit…I was informed this morning that our Property Management Department is coming off one of the best seasons in history! If you know of anyone needing a new management company, certainly give me a call!
If I can provide you with any additional specific market data, please be sure to let me know.
Have a very blessed and Happy Thanksgiving celebration.
