THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Saturday, October 29, 1994 TAG: 9410270361
SECTION: REAL ESTATE WEEKLY PAGE: 18 EDITION: FINAL
COLUMN: Common Ground
SOURCE: G. Robert Kirkland and Michael A. Inman
LENGTH: Medium: 62 lines
I'm a board member in a condominium that is a townhouse style structure.
I have heard that there are changes in the requirement for flood insurance.
Can you tell me more about the flood insurance requirements and if there have been any recent changes?
Your information is accurate in that there have been some changes in the flood insurance requirements, which affect condominiums.
The changes have been made in the National Flood Insurance Program by its administrators pursuant to the National Flood Act of 1966.
As a result of your question, we checked with a local insurance advisor who works with numerous condos in the area, Pete Booterbaugh, who has advised us that there are new regulations that impose different requirements, depending on the type of condo, that is, whether it's a low-rise or high-rise condo.
These requirements are an outgrowth of the hurricanes and floods that haves plagued the Southeast and the south-central parts of the country during the past few years.
The losses, of course, have been in the millions, and traditional insurance excludes losses related to floods and hurricanes.
As of Oct. 1, as we understand it, all low-rise condominiums must be insured for their replacement cost under a flood insurance policy, which can be obtained through the National Flood Insurance Program.
However, some degree of co-insurance is permitted. Formerly, flood insurance coverage was based only on fair-market value of the buildings as opposed to replacement cost.
The new regulation has had a significant impact on flood insurance premiums.
These developments are so new that we are not completely familiar with all the ramifications that might stem from them.
However, the Southeastern Virginia Chapter of the community Associations Institute is sponsoring a workshop, which will be presented by National Flood Insurance Program representatives, on Saturday, Nov. 5, from 9 a.m. to noon at the Bayside Recreation Center on First Court in Virginia Beach, and, best of all, there is no admission charge.
There is plenty of seating for all interested parties.
We strongly recommend that you attend this program to learn all the details about the impact of the new flood insurance regulations, especially since this is traditionally the time of year for budget review for next year.
You may have a significant change in your budget figure for flood insurance. MEMO: G. Robert Kirkland, president of a Virginia Beach property management
consulting firm, and attorney Michael A. Inman specialize in Virginia
community association issues and are affiliated with the Southeastern
Virginia chapter of the Community Associations Institute.
Send comments and questions to them at Real Estate Weekly, 150 W.
Brambleton Ave., Norfolk, Va. 23510. To submit questions by phone, call
446-2033; fax: 446-2531.
by CNB