Across Charlotte-Mecklenburg and the United States, some people with flood insurance policies are seeing their cost (premiums) increase. This is due to the federal Flood Insurance Reform Act of 2012, sometimes called "Biggert-Waters."
This flood insurance information is provided as a courtesy to residents of Charlotte-Mecklenburg. The best sources of information about any changes to flood insurance rates are:
• your flood insurance agent
• the Federal Emergency Management Agency (FEMA)
• the National Flood Insurance Program (operated by FEMA)
Fact Sheet about the Flood Insurance Reform Act of 2012 (FEMA document)
Flood Insurance Reform brochure for property owners (FEMA document)
Congress voted to raise rates to reflect actual flood risk
The Biggert-Waters Flood Insurance Reform Act was approved by Congress and signed by the President in 2012. It eliminates many flood insurance subsidies and increases flood insurance rates for many policyholders. Some premiums will go up substantially.
What are flood insurance subsidies?
Owners of some older properties at higher risk of flooding have been paying artificially low flood insurance premiums. This is because the buildings were built before the community adopted its first Flood Insurance Rate Maps. These subsidizes rates are now being eliminated to improve the financial stability of the National Flood Insurance Program.
Premiums will not increase for the 80% of flood insurance policyholders who are already paying the full actuarial rate.
Who has been receiving subsidized rates?
• 20% of flood insurance policyholders across the U.S.
• 21% of flood insurance policyholders in Charlotte-Mecklenburg
• 795 flood insurance policyholders in Charlotte-Mecklenburg
What is changing?
• Some subsidies are being eliminated immediately.
• Some subsidies are being phased out over time.
• The amount of increase will be different for each policyholder, depending on a range of factors.
• The new rates will reflect the full flood risk of an insured building.
Each flood insurance policy is unique. We suggest you contact your flood insurance agent to learn if your premium will be affected, when your rates may change and how much they may increase.
First properties to be affected by the change
The policyholders seeing flood insurance rate increases include:
• business properties in the Special Flood Hazard Area (mapped floodplain)
• properties classified as "severe repetitive loss"
• homes in the Special Flood Hazard Area that are not the owner's primary residence.
Increases will range from $0 for properties already paying actuarial rates up to 25 percent per year until the policy reflects the full risk rate.
Rates will likely change upon your policy renewal date.
See a video
that explains flood insurance reform.
Discounts still apply
Because of participation in the Community Rating System, flood insurance rates for property in the regulated floodplain will still be discounted by:
• 25% in the City of Charlotte
• 20% in the Town of Pineville and unincorporated Mecklenburg County.More about local flood insurance rate discounts