Fighting FEMA Over Flood Insurance

Demler claims it could cost hundreds of residents hundreds of dollars if the findings are eventually approved.

FEMA has embarked on a $1-billion dollar effort to re-classify the risk of floods in virtually every community in America. Wheatfield is just the latest to learn of the preliminary findings as they pertain to its locale.

It is also not alone in disagreeing with them.

In the case of Wheatfield, FEMA's new maps would put an additional 200 homes into so called "higher risk" flood zones.

It means anyone who owns a house in one, and who carries a federally backed mortgage, would be required to buy flood insurance from the government, at a cost of several hundred dollars a year.

"Frankly the insurance premiums they pay will never benefit those home owners unless of course there's a major flood event here, and there's a state of emergency declared," said Demler, adding, "We've had none of those in my knowledge in my history here."

While taking no position on FEMA's requirements, insurance agent Ted Passero of Niagara Falls confirms flood insurance claims are a rarity.

"To be honest with you , in my 30 years in the business locally, I don't believe I've ever had a claim on flood insurance," Passero said.

But Passero, who gets a small fee to process flood insurance applications for the government--which actually gets the premiums--says that doesn't mean it's a bad idea to have flood insurance

"Let me put it this way. If I never had a customer's house burn down, and of course I've had, would I think it's not a good idea to have fire insurance on their house?"

As Demler and his staff prepare to exercise their right to appeal they've had encouraging news from other municipalities who have successfully done so, and who say FEMA has been "reasonable" in listening and making changes where errors in the new FEMA maps can be proven.

Confirming it could cost the town "thousands of dollars" to make an appeal, Demler says it's money well spent. He looks at it as a one time expense which, for a few dollars per resident, could save them hundreds of dollars every year in the future.

In addition, FEMA, responding to similar concerns raised in other communities, earlier this year relaxed the requirements somewhat.

According to a news release posted on the FEMA web site January 23rd, and titled "Grandfather Rules Can Lower Flood Insurance Rates" :

The Federal Insurance and Mitigation Administration recognizes policyholders who have maintained continuous coverage or have built in compliance with the Flood Insurance Rate Maps (FIRMs) - or who have done both - with grandfather rules that lower flood insurance rates.