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Biggert-Waters Act 


What is it?

In 2012, Congress adopted the Biggert-Waters Act (BW-12) to address the National Flood Insurance Program’s (NFIP) $28 billion deficit, which began with catastrophic claims during the 2005 hurricane season (Irene, Katrina, Rita and Wilma) and the 2008 season (Fay, Ike).  The Act basically phases out federal subsidies on NFIP policies. Nationwide,NFIP logo approximately 19% of all NFIP policies will lose subsidies and be phased into standard-rated policies.

PreFIRM subsidies are the first to be phased out. 

Changes will impact nearly 7,900 residential or commercial policy holders in Lee County (4,200 in unincorporated Lee). These include non-primary residences, businesses, and properties which already had more than one flood insurance claim (repetitive loss properties).  As their policies are renewed, they will begin to pay the unsubsidized rates. Under recently passed amendments, premium increases may go up 18% annually until the full-risk rate is reached.

PreFIRM subsidies protected owners of property that does not meet base flood elevations (BFE) because they were built before the first Flood Insurance Rate Maps (FIRMS) established base flood elevations here. The base flood elevation is the water level height expected in a catastrophic flood.  For unincorporated Lee County, Bonita Springs, Fort Myers Beach and Fort Myers, the PreFIRM date is 1984.  In Sanibel Island it’s 1979; and in Cape Coral it’s 1981. 

Owners of primary residences, whether single-family homes or condo units, will lose their subsidies when there is a change of ownership or policy lapse.  This will eventually affect another 10,600 policy holders in Lee County (6,930 in unincorporated Lee County).

NIFP logoThe Federal government requires a flood insurance policy for any mortgaged property in the Special Flood Hazard Area, which includes A, AE and V zones. Therefore, anyone buying or selling residential or commercial structures in these zones will immediately be affected. All new policies are being written without subsidies.

Eventually, at least 30,700 current NFIP policy holders in Lee County (17,800 in unincorporated Lee County) will be affected by losing subsidies related to base flood elevations.

Bills have been introduced in Congress to delay implementation of this new Act to study its affordability.Look up flood zones and base flood elevations online at

Learn more about Biggert-Waters:
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