Flood Bill: Rate Relief
If you live in one of the Gulf coast’s high-risk flood plains, then you have more than likely experienced first hand the recent hikes in Flood Insurance rates. In 2012, FEMA fought to rewrite the National Flood Insurance Program (NFIP) in an attempt to wean hundreds of thousands of homeowners off of subsidized rates. This involved an extensive updating of current flood maps, which passed the buck along to coastal residents.
In some cases, the rate increases have been so severe that homeowners cannot afford to pay their premiums. There is good news on the horizon for coastal homeowners however.
On Thursday March 13, 2014, the Senate went along with the House of Representatives and passed a bill to reverse the 2012 flood insurance reforms. The hope is that this bill will help stem the tide of flood insurance premium increases.
Senator Bob Menendez (D-N.J.) and Representative Michael Grimm (R-N.Y.) penned the Homeowner Flood Insurance Affordability Act of 2013. Instead of the crazy rate hikes we’ve been seeing, homeowners will be responsible for paying a $25 surcharge on top of their usual premiums. Owners of second homes and businesses however will pay $250. In theory, theses surcharges will help to ensure that no debt is added to the $25 billion already owed by the NFIP.
The Homeowner Flood Insurance Affordability Act will not only prevent sky-high rate increases, but it will also make refunds available to policyholders who have overpaid on their premiums.
There are a lot more features to this bill, including the reinstating of grandfather clauses and sales trigger laws. You can check it all out here.
The bill has now moved into the hands of President Obama and is awaiting his signature.
For more information on Flood Insurance, contact a Texan Insurance agent today!