Homeowner Flood Insurance Affordability Act was signed in to law Friday, March 21st by President Obama!
REALTORS and other home ownership activists fought hard for this for about two years, calling and writing our Congress members and explaining the effect of recent increases in flood insurance across the country.
By way of background, super storms and major floods have bankrupted FEMA. So in 2012, National Flood Insurance Program was instituted in the Biggert-Waters Reform Act.
The result was that some homeowners’ flood insurance rates were rising by as much as a factor of 10! Homes that previously were not in a flood zone, suddenly required flood insurance!
FEMA was redrawing flood maps without any input from communities, then requiring each homeowner to obtain an elevation certificate to prove their home was above the flood line.
Now, FEMA has to consult the communities it affects, and keep flood insurance rates to a maximum of 18% per year. FEMA’s new assignment is to charge approximately 1% of the value of the property each year for most policy holders. And, the provision that reassessed homes upon resale has been removed.
There are more details to the story and how it may impact you – so if you have questions feel free to contact me!