W hen FEMA H eads for the H ills

Climate Retreat & the Flood Insurance Reform Act

Robert R.M. Verchick Gauthier-S t. Martin Chair in Environmental Law, Loyola University! S enior Fellow, Disaster Resilience Leadership Academy,Tulane University!

Lynsey Rae J ohnson J .D. Candidate, Loyola University!

W hen FEMA H eads for the H ills

Climate Retreat & the Flood Insurance Reform Act

Robert R.M. Verchick Gauthier-S t. Martin Chair in Environmental Law, Loyola University! S enior Fellow, Disaster Resilience Leadership Academy,Tulane University! Lynsey Rae J ohnson J .D. Candidate, Loyola University!

Source: National Climate Assessment 2009

Wet t er

H ot t er

Source: National Climate Assessment 2009

Source: National Climate Assessment (Draft) 2013

Source: National Climate Assessment (Draft) 2013

RESIST

Adjust

THE PROSAND CONS ! OF RETREAT

PRINCIPLES OF RETREAT

!
E G G I B

RS E T A W T R

A RECIPE FOR RETREAT?

Flood Insurance Reform Act of 2012!

!
E G G I B

RS E T A W T R

A RECIPE FOR RETREAT?

Flood Insurance Reform Act of 2012!

!
Subsidies Phase Out: Subsidies removed for businesses, vacation homes, and severe repetitive loss properties. Rates will increase 25%/yr. ! ! No New S ubsidies: Subsidies lost when any property is sold or a policy lapses. (Attn: primary home owners.)! ! New Maps, New Rates: New rates will be phased in over 5 yrs. (Attn: primary home owners.) !

!
E G G I B

RS E T A W T R

A RECIPE FOR RETREAT?

Flood Insurance Reform Act of 2012!

!
Structures Resistance is not futile: Premiums will recognize ! ood protection systems like levees.! ! Neither is Adjustment: Grant programs available for elevating structures, etc. (HMGP , NFMF , PDM)

!
E G G I B

RS E T A W T R

Who Will Be Impacted by Rate Increases Nationally under Section 205? NFIP Policyholders under Section 205
(data as of 12/31/2012)
These pre-FIRM nonprimary residences, business properties, and Severe Repetitive Loss (SRL) properties (252,851 policies) will see 25 percent increases until the the true risk premium is reached. These pre-FIRM primary residences (578,312 policies) will retain their subsidies until sold to new owner, policy lapse, etc. These properties, which include preFIRM condos and multifamily properties (244,085 policies), will not see immediate increases.

Flood Insurance Reform Act of 2012!

Biggert Waters Flood Insurance Reform Act of 2012

A RECIPE FOR RETREAT?

5%

81%

4%

Not affected by 205 (already actuarially rated), 4,480,669 policies

Pre-Flood Insurance Rate Map (pre-FIRM): Properties located within a Special Flood Hazard Area (SFHA) that were constructed before a community adopted its first Flood Insurance Rate Map (FIRM). Note: Some structures are captured under more than one category(for example multi-family severe repetitive loss properties).

Most policyholders are not subsidized. 81 percent of NFIP policyholders nationally are already actuarially rated.

!
R E G G BI

RS E T T WA

A RECIPE FOR RETREAT?

Flood Insurance Reform Act of 2012!

!
E G G I B

RS E T A W T R

A RECIPE FOR RETREAT?

Flood Insurance Reform Act of 2012!

M apping! ! New Technical Mapping Advisory Council: ! advice must be followed.! ! New Natl Flood Mapping Program: ongoing charge; must map residual risk; must develop on a watershed basis; must use most accurate topography and elevation data available. Include climate-impact data? ! !

Calcasieu Parish, LA: 40% of residents affected; annual premiums may soar to $20,000 (est.) Plaquemines Parish, LA: from $633 to $28,000/yr. (est.) Marsheld, MA: from $458 to $15,000/yr. (est.)

Queens, NY: from $458 to $15,000/yr. (est.)

Joseph Jack Boze, a retired NASA executive, says he is having trouble selling his Kemah home because of rising flood insurance premiums (Photo by James Nielsen)

PRINCIPLES OF RETREAT
Flood Insurance Reform Act of 2012!
Govt Involvement Sound Science Public Part. Socially Vulnerable Right Scale Do No Harm
?

PRINCIPLES OF RETREAT
Flood Insurance Reform Act of 2012!
Govt Involvement Sound Science Public Part. Socially Vulnerable Right Scale Do No Harm
?

PRINCIPLES OF RETREAT
Flood Insurance Reform Act of 2012!
Govt Involvement Sound Science Public Part. Socially Vulnerable Right Scale Do No Harm
?

PRINCIPLES OF RETREAT
Flood Insurance Reform Act of 2012!
Govt Involvement Sound Science Public Part. Socially Vulnerable Right Scale Do No Harm
?

PRINCIPLES OF RETREAT
Flood Insurance Reform Act of 2012!
Govt Involvement Sound Science Public Part. Socially Vulnerable Right Scale Do No Harm
?

PRINCIPLES OF RETREAT
Flood Insurance Reform Act of 2012!
Govt Involvement Sound Science Public Part. Socially Vulnerable Right Scale Do No Harm
?

PRINCIPLES OF RETREAT
Flood Insurance Reform Act of 2012!
Govt Involvement Sound Science Public Part. Socially Vulnerable Right Scale Do No Harm
?