Blog Archives • Page 2 of 7 • Northeast Engineers

Flood Insurance Refunds Expected in October

September 24th, 2014

Insurance companies will begin issuing refunds in October.

The National Flood Insurance Program (NFIP) is in the process of implementing Congressionally mandated reforms required by the Homeowner Flood Insurance Affordability Act of 2014. The new law offers relief to some policyholders who experienced steep flood insurance premium increases in 2013 and early 2014 and calls for refunds of the difference between the subsidized rates and the higher full-risk rates that policyholders were required to pay as a result of Biggert-Waters. Insurance companies will begin issuing refunds in October 2014. Increased premiums for policies effective on or after October 1, 2013 will be refunded to eligible policy holders.

You may be entitled to a refund if:

You have a new or reinstated policy for a Pre-FIRM Building; or
Your premium increase was greater than 18%.

The following policies may not be eligible for refunds:

Policies for Pre-FIRM Secondary Homes in effect before July 6, 2012;
Policies for certain Severely or Repetitively Flooded Buildings; and
Policies That Increased Because of a Coverage Change.

Refer to this fact sheet for additional details or contact your insurance agent.

NE&C offers several services to property owners located within a Special Flood Hazard Area that could save thousands of dollars in flood insurance premiums. Contact us for more information. We look forward to hearing from you.

Blog post by Jason Gold, P.E..

photo credit: stevendepolo via photopin cc

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Updated Environmental Due Diligence Standards

April 18th, 2014

Two of the ASTM standards frequently referenced when conducting environmental due diligence have recently been updated; those for both Phase I ESAs and for Environmental Transaction Screens. The Phase I ESA process and the Transaction Screen process are markedly different. It is important to understand how they differ. The two standards are compared in the table below.

**Phase I ESA vs. Transaction Screen**
Consideration	Phase I ESA	Transaction Screen
Constitutes “All Appropriate Inquiry”	Yes	No
Conclusions	“the presence or *likely* presence” of oil or hazardous materials. (Recognized Environmental Condition)	“the *possible* presence” of oil or hazardous materials. (Potential Environmental Concern)
Level of expertise	Environmental Professional	Anyone who can “satisfy themselves that they are qualified”.
Scope of work	Public records review, detailed evaluation.	Cursory evaluation

Transaction Screens are generally reserved for low risk properties only. Phase I ESAs are conducted on moderate to high risk properties and for transactions where CERCLA Landowner Liability Protections are desired.

Environmental Transaction Screen

ASTM E1528-14, “Standard Practice for Limited Environmental Due Diligence: Transaction Screen Process”, was just published in February. (I was grateful for the opportunity to contribute to this revision process as a member of the ASTM task group. It was an exciting opportunity!) Like the updated Phase I standard, the updated Transaction Screen standard will result in a better product for the client. One key change is the inclusion of aerial photographs as a historical research source.

The previous Transaction Screen Process listed only fire insurance maps and local street directories as historic sources to be reviewed. Aerial photographs have been added to that list. Aerial photographs are generally available where other sources are not and are available at no cost in Rhode Island. In addition, the criteria for reviewing more than one source has been improved. Previously preparers were only required to review one source if it provided any information. The new standard requires the review of additional sources until sufficient information is found.

Phase I Environmental Site Assessments

E1527-13, “Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process”, was published last November and formally incorporated into the USEPA’s All Appropriate Inquiry (AAI) rule in December. The new standard includes several key changes such as:

An emphasis on vapor encroachment and regulatory file reviews;
Revised definitions of Historical Recognized Environmental Conditions (HREC) and Recognized Environmental Conditions (REC);
The introduction of a new term – the Controlled Recognized Environmental Condition (CREC).

I summarized these changes in an earlier blog.

Blog post by Jason Gold, P.E.

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Homeowner Flood Insurance Affordability Act Signed Into Law

March 24th, 2014

President Obama signed the Homeowner Flood Insurance Affordability Act of 2014 into law on Friday, March 21th 2014. This article by the Insurance Journal highlights the changes. This is welcome news by many, particularly homeowners who’s flood insurance rates have skyrocketed and realtors who have seen a decline in coastal housing sales. The bill, among other things:

Reduces rate increases;
Prevents home sales from triggering the full rate risk;
Reinstates grandfathering for pre-FIRM properties; and
Attempts to minimize annual premiums to 1% of the coverage amount.

NE&C provides several resources and services for property owners, developers, and realtors impacted by the flood insurance program. Contact us for more information.

UPDATE: FEMA recently released an informative overview of the Act as well as this handy summary table.

Blog post written by Jason Gold, P.E.

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Senate Approves Homeowner Flood Insurance Affordability Act

March 14th, 2014

Yesterday, March 13th 2014, the Senate approved the “Homeowner Flood Insurance Affordability Act”. The bill now moves on to the Whitehouse for the President’s authorization. This article by the Insurance Journal highlights the changes. This is welcome news by many, particularly homeowners who’s flood insurance rates have skyrocketed and realtors who have seen a decline in coastal housing sales. The bill, among other things:

Reduces rate increases;
Prevents home sales from triggering the full rate risk;
Reinstates grandfathering for pre-FIRM properties; and
Attempts to minimize annual premiums to 1% of the coverage amount.