New flood insurance law will slow increase in premiums
Homes in flood-prone areas will no longer be subject to sharp increases in flood insurance premiums when they are sold or when a new flood map places them in a higher-risk area, under a bill signed by President Obama Friday.
However, people who live in older homes and enjoy subsidized flood insurance rates could still see annual increases in their premiums of up to 18 percent. And all properties in high-risk areas (labeled with codes starting with A or V on flood maps) will pay a new premium surcharge of either $25 or $250 per year to help offset the cost of the new bill.
The bill, which was supported by the National Association of Realtors, should help revive home sales in high-risk areas where uncertainty over flood insurance premiums was tying up transactions.
Called the Homeowner Flood Insurance Affordability Act of 2014, the new legislation amends the Biggert-Waters Flood Insurance Reform Act of 2012, which was supposed to gradually restore the national flood insurance program to solvency and encourage homeowners and communities to undertake flood mitigation efforts in high hazard areas. But it was resulting in skyrocketing premiums for some property owners.
Read the rest here:
http://ift.tt/1nYud0I
Homes in flood-prone areas will no longer be subject to sharp increases in flood insurance premiums when they are sold or when a new flood map places them in a higher-risk area, under a bill signed by President Obama Friday.
However, people who live in older homes and enjoy subsidized flood insurance rates could still see annual increases in their premiums of up to 18 percent. And all properties in high-risk areas (labeled with codes starting with A or V on flood maps) will pay a new premium surcharge of either $25 or $250 per year to help offset the cost of the new bill.
The bill, which was supported by the National Association of Realtors, should help revive home sales in high-risk areas where uncertainty over flood insurance premiums was tying up transactions.
Called the Homeowner Flood Insurance Affordability Act of 2014, the new legislation amends the Biggert-Waters Flood Insurance Reform Act of 2012, which was supposed to gradually restore the national flood insurance program to solvency and encourage homeowners and communities to undertake flood mitigation efforts in high hazard areas. But it was resulting in skyrocketing premiums for some property owners.
Read the rest here:
http://ift.tt/1nYud0I
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