National Hurricane Survival Initiative

Saving Lives & Minimizing Damage -- Is your community prepared?

The impacts and costs of flooding

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By: Craig Fugate

In an era of increasingly intense and frequent severe weather, tens of millions of Americans are all too familiar with the impacts and costs of flooding.

Unfortunately, Congress has failed to update flood policy to meet the challenges of this new norm, instead choosing to continually extend its own deadline for reauthorizing the National Flood Insurance Program (NFIP), which provides federally backed coverage for homeowners and small businesses in 22,000 communities nationwide.

The program, which is more than $20 billion in debt, is in dire need of reform. In its current form, the NFIP has failed in two of its goals — decreasing the costs from flood damage and improving the federal government’s management of flood risk — and without major improvements will continue to burn through taxpayer dollars while incentivizing policyholders to live in at-risk areas through subsidized premiums.

And yet, Congress has kicked this can down the road for the seventh time in less than a year.

This continued delay comes despite the fact that some in Congress are proposing fresh ideas for fixing the program. Pending bills would require sellers to disclose flood risk to homebuyers, require repeatedly flooded communities to develop localized plans to reduce risk, enhance mapping of risk areas, boost investments in resilience — for example, through a revolving loan fund — and engage private insurers, all viable strategies to keep people safer while decreasing the costs of disasters.

The failure of Congress to act on these proposals should be particularly concerning to the tens of millions of Americans who live in areas with a 26 percent chance of flooding during the life of a 30-year mortgage.

And there’s a more immediate threat: The National Oceanic and Atmospheric Administration predicts a 75 percent chance that this year’s hurricane season, which began June 1, will be equal to or worse than average (the season has already produced two hurricanes, a benchmark that isn’t reached until Aug. 28 in an average year).

Last year’s destruction from Hurricanes Harvey, Irma and Maria caused more than $270 billion in losses. Even now, 10 months after the last of those storms, many Americans continue to grapple with their losses and unsettled insurance claims, and many communities struggle with how and where to rebuild.

Americans deserve better from the NFIP. Established in 1968 to compensate for a lack of available private insurance and to promote sound floodplain management, the program is where most people turn for flood insurance. And in the five decades since the NFIP’s creation, it has grown to cover roughly 5 million policyholders nationwide. Unfortunately, in that time it also has largely failed to mitigate flood risk while becoming fiscally unsustainable.

Each month, people unwittingly buy homes in areas likely to flood, learning only at closing that they’re required to carry flood insurance on their new property — coverage that isn’t included in a standard homeowner’s policy.

Some, due to a perceived lack of flood risk, feel they should not be required to purchase the insurance, and many who have flood insurance policies — even those who pay federally subsidized premiums — believe the costs are too high. And others who are not required to buy insurance because they live adjacent to — versus in — designated flood-prone areas are often unable to pay for repairs and rebuilding when major storms flood their properties.

Fiscal conservatives who support self-sustaining government policy and programs largely want the NFIP reformed and point to the billions in losses that the program has racked up, including the recent forgiveness of a $16 billion debt to the federal Treasury.

Others who are similarly concerned about wasteful spending note that the program functions as a perverse incentive, encouraging people to live in high-flood-risk areas and to rebuild, sometimes again and again, after their homes are damaged or destroyed — rebuilding that is financed through subsidies and payouts.

Floods don’t choose political sides or respect jurisdictional boundaries, nor are they confined to the coasts. In the past decade, landlocked states accounted for eight of the 10 states that experienced the most flood-related disaster declarations. And allowing the federal government to fund repairs and rebuilding for policyholders that repeatedly flood — in some cases to the tune of exponentially more money than what their property is worth — will drive the NFIP deeper into debt.

With the historic flood costs our nation suffered last year, and the potential for billions of dollars more in damage this year, Congress must act now to authorize a modernized NFIP with effective policies regarding disclosure and repetitive-loss properties. That is one surefire way to help communities prepare for flooding and break the costly cycle of rebuilding the same structures time and time again.

Craig Fugate was administrator of the Federal Emergency Management Agency from 2009 to 2016.

Source: https://amp.washingtontimes.com/news/2018/aug/5/the-impacts-and-costs-of-flooding/?__twitter_impression=true

Financing to help Florida’s SNFs meet power requirements

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Revered for its year-round warm temperatures and relaxing lifestyle, Florida is home to the largest population of aging and elderly Americans who retire to the Sunshine State. However, Florida is also known for its disruptive weather, especially during the summer months that often bring with them devastating hurricanes and record-breaking heat waves.
2017’s hurricane season was particularly destructive in Florida. Hurricane Irma cost the state billions and took more than 70 lives. Among the victims were 12 residents of a Hollywood, Florida nursing home, who died after the facility lost power in the days following Irma’s wrath.

In response to this tragic event, a new mandate from Gov. Rick Scott requires all senior living facilities to install power generators, and to have enough fuel supply to run the generators for 72 hours. Nursing homes and assisted living facilities have until July 1 to comply. Although thousands are already in compliance, many are without the financial resources required to make these expensive system upgrades.

There is a widely available, but lesser known, program that can help. Commercial Property Assessed Clean Energy Financing (C-PACE) is a program that provides business owners with funding for improvement projects such as the installation of impact-resistant windows and doors, roofing, HVAC and solar panels.

Through a voluntary assessment on their property tax bill, property owners pay for the improvement projects over time. C-PACE loans are tied to the property itself and not the property owner, offering a rare chance for property owners to overcome common barriers of the upfront costs.

Ygrene is one of the nation’s leading providers of C-PACE. Our program is currently available in more than 150 cities and counties in Florida; however, most property owners do not know that C-PACE is an option for them. In fact, a recent survey commissioned by the National Hurricane Survival Initiative revealed that less than 8% of Floridians are aware of the program.

It’s important that nursing homes and assisted living facilities in Florida know that they are eligible for the C-PACE program, as they all share the same goal of ensuring residents are kept safe and cared for during disasters. C-PACE providers like Ygrene can help nursing homes meet the governor’s new mandate for backup power supply, but beyond that, C-PACE is a practical option for affording other projects that will improve facility conditions for the seniors in their care.

With the official start to Florida’s hurricane season having begun on June 1, and the deadline for complying with the new state mandate just around the corner, facility upgrades for nursing homes should be a top priority.

As we all know, when the stifling heat and punishing storms hit Florida this summer, our seniors are among the most vulnerable. They’ve taken care of us, now it’s time to take care of them.

Kate Wesner is the Senior Director of Government Affairs at Ygrene, national leader in residential and commercial energy efficiency and resiliency project financing.

NEWS RELEASE: More active storm seasons are “new normal” and Floridians need to get homes, insurance, plans ready

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~ Survey: Many Floridians weren’t prepared for Irma, reflecting continued gaps in knowledge ~

TALLAHASSEE, Fla. – Floridians should expect that more active storm seasons are the “new normal” – a reality they must prepare for by hardening their homes, updating their insurance, and getting personal and business plans ready. That’s the message from former FEMA Director Craig Fugate in releasing a new survey showing many Floridians are not ready for this threatening new dynamic.

The survey, commissioned by the National Hurricane Survival Initiative, found that 51 percent of Floridians say they were caught unprepared in at least one way leading up to Hurricane Irma, which tore through Florida in September. That included 1 in 5 who cited a lack of window protections like shutters or boarding (22 percent), batteries or backup power (20 percent), and gasoline (23 percent), while 15 percent admitted they lacked an evacuation plan or water supply.

“After Florida was pummeled by a record-breaking 2017 hurricane season that included a Category 4 hurricane, we cannot stress enough the need to start getting ready now,’’ said Craig Fugate, former director of the Federal Emergency Management Agency and host of the initiative’s “Get Ready, Florida!” television special. “It’s looking like more active hurricane seasons are the ‘new normal,’ and Floridians certainly need to take hurricane preparedness more seriously to prevent loss of life and property.’’

In response to this new reality, the National Hurricane Survival Initiative launched a new awareness campaign to educate and encourage residents to take steps to be storm-safe and hurricane-ready. It features resources on the GetReadyFlorida.org website and “Get Ready, Florida!,” a 30-minute television special slated for broadcast in early 2018. Both are packed with practical information and preparation tips from hurricane and industry experts.

Fugate, who as director of the Florida Division of Emergency Management guided the state through its unprecedented pounding from named storms in 2004 and 2005, called on Floridians to use the time between hurricane seasons to harden their homes, update their insurance, and develop plans for their families and businesses.

The survey, which polled more than 500 Floridians, revealed knowledge gaps that may prevent Floridians from fully preparing. These gaps include misunderstanding their insurance coverage and not knowing about financing options that could help them harden their homes.

The survey also revealed some potential safety issues.

  • Thirteen percent of Floridians surveyed wrongly assume the garage is a safe place to run a generator. One in 10 incorrectly – and dangerously – believe that an apartment balcony is acceptable for generator operation.
  • Fewer than 1 in 4 (23 percent) know that it’s best to transport gasoline on the car roof or in an outside storage container. Close to half  (44 percent) are unaware of how to best transport gasoline when evacuating. Of the remaining, 28 percent incorrectly cited the trunk, 2 percent wrongly said the back seat, and 3 percent incorrectly said anywhere would be fine.

The survey found that while 42 percent believe they know the amount of their hurricane deductible, many are mistaken: Though most homeowners have hurricane deductibles in the $5,000 range, 73 percent believe it’s less than that and one in four believe it is less than $1,000.

That could come back to haunt those homeowners. Fifty-five percent of those surveyed said paying their deductible would be difficult or impossible, while only 26 percent said paying their deductible would be “no problem at all” or “very manageable’’ following a storm.

Guy McClurkan, chief operating officer of the FAIR Foundation, said more Floridians should consider purchasing flood insurance because flood protection is not covered in a standard homeowner’s insurance policy. But, he added, homeowners cannot wait until a storm is bearing down.

The survey found that of the many homeowners who attempted to purchase flood insurance as Hurricane Irma approached, only 1 in 3 said they were able to add it in time.

“Many people don’t realize that hurricane damage is subject to a special hurricane deductible,” said Locke Burt, Chairman and President of Security First Insurance. “Some people can afford a larger deductible than others, but all homeowners need to know what their deductible amount is, and what their policy does and does not cover.’’

Many of those surveyed believe their homeowners insurance policy covers items that may not actually be covered – 1 in 5 believe their policy covers replacing spoiled food, 1 in 4 believe it covers tree and debris removal from yards, and 1 in 3 believe it covers temporary housing.

“Homeowners insurance typically covers damage to your home and personal belongings, and living expenses while your home is being rebuilt,” said Alok Jha, Assured Risk Cover chief executive officer. “Homeowners can purchase special insurance to fill the gaps that their homeowners’ insurance doesn’t cover, but only if they realize those gaps exist.”

“Your home is probably your single largest investment – and if it’s damaged or destroyed by a hurricane, the effect is devastating,’’ added Melissa Burt DeVriese, Security First Insurance Chief Administrative Officer and General Counsel.

Many Floridians know that parts of their houses are vulnerable but have no idea about financing options that could pay to strengthen or replace them. Floridians considered their windows the most vulnerable part of the home (36 percent), followed by roofs (33 percent) and flood-prone areas (23 percent). They said they would make home hardening improvements if they had the money, especially installing impact-resistant windows (6 in 10), wind-resistant roof shingles (4 in 10), and reinforced window and door frames (4 in 10).

“The time to upgrade vulnerable parts of a home is now, months before the next storm season rolls around,” said Tat Granata, an executive with Florida Home Improvement Associates. “Homeowners can access an array of newer products, like impact-resistant windows, that can greatly improve a home’s safety profile.”

“Impact-resistant windows are designed to withstand the impact of 2x4s hitting them at 50 feet per second to simulate 140 mph wind speeds,” said Rod Miller, Senior Vice President for Custom Window Systems. “If your window is breached, it creates a pressure variance that could cause the roof to blow off your house.’’

Fewer than 1 in 10 (8 percent) are aware of the PACE (Property Assessed Clean Energy) program, an innovative tool that provides private financing to homeowners to make home hardening and energy efficient improvements through their property tax bills. While most were unaware of the PACE program, a majority (53 percent) said they would be interested in such a program.

“Ygrene is focused on providing Floridians with an accessible and affordable way to make their homes more resilient,’’ said David Kelly, Ygrene SVP sales, national sales director. “With PACE, homeowners have a viable option to reduce their risk exposure to a major hurricane and save money in the process. It truly is a win-win for the Sunshine State.”

Four in 10 Floridians said they evacuated their homes during Hurricane Irma, but 1 in 4 say that after this hurricane season, they are less trusting that forecasts can predict where a specific hurricane will make landfall.

“We live in the hurricane capital of the United States,’’ said Erik Salna, Associate Director & Meteorologist for the International Hurricane Research Center at Florida International University. “Florida residents need to understand that’s the major hazard we need to be ready for and prepared for each and every hurricane season.’’

The survey, fielded in Dec. 5-10, has a margin of error of +/- 4.2%.

The National Hurricane Survival Initiative is sponsored by Security First Insurance, StormPeace, Florida Home Improvement Associates, Custom Window Systems, and Ygrene in partnership with the FAIR Foundation, the International Hurricane Research Center at Florida International University, the National Emergency Management Association, and The Salvation Army.

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How PACE financing can allow you to make affordable home improvements

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One of the main hurdles homeowners face in getting hurricane protection improvements is the lack of simple, affordable financing options. Home equity loans or consumer lines of credit depend on FICO scores, and the approval process can take time and may end with a denial.

This is where property assessed clean energy (PACE) financing from Ygrene can help, providing property owners access to no-money-down, 100% financing for energy efficiency, renewable energy, and hurricane protection upgrades. Some of the most common improvements financed through PACE are impact-resistant windows and doors, roofing, HVAC, and solar panels. With Ygrene, approval can happen in as little as 30 minutes and eligibility is based on home equity(among other factors), not on the property owner’s credit score, proof of employment, or financial statements.

Repayment is made through an addition to homeowner property taxes, with terms up to 20 years. Other benefits include no payments for up to 17 months and all work being done through Ygrene-certified contractors, who won’t receive final payment until the job is completed. In an event of a sale, the PACE payment may transfer to the new owner, but most mortgage lenders require full repayment of the PACE lien upon resale or refinance.

As Florida’s largest PACE provider covering nearly half of Florida, Ygrene has financed more than 15,000 projects totaling $318 million, including thousands of hurricane protection projects. Now it’s easier than ever to get ready for the next hurricane season with fast and easy, affordable financing for improvements that will protect homeowners’ most valuable assets – their homes and families.

Why you might need supplemental coverage

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You’ve most likely heard of supplemental health insurance. It covers certain treatment and care that a traditional policy doesn’t. Think AFLAC. A similar problem exists when it comes to insuring your home; a typical homeowners policy doesn’t cover everything. In fact, it may not cover some critical expenses that arise immediately after a hurricane.

After an uncommonly active 2017 season, it’s tremendously important to know how much you’re covered, as each day that passes since the last hurricane brings us is one day closer to the next. StormPeace is supplemental coverage that offers peace of mind to Florida homeowners and renters – they can know they’re covered for evacuation expenses, tree and debris removal, and replacing spoiled food. They can also use StormPeace to pay their deductible.

We all take a risk living in the Sunshine State, where our entire population is vulnerable to hurricanes. We choose to live here for the beautiful beaches, breathtaking sunsets, and pleasant weather that comforts the soul. When specifically tailored for homes likely to be affected by hurricanes, this kind of coverage can help take much of the worry out of our risky living situations. While Mother Nature can’t be controlled, the pointless spending of unnecessary out-of-pocket insurance expenses certainly can be.