Updated flood insurance regulations now in effect
Wednesday, April 6, 2016
On April 1, a number of changes occured as part of the 2014 Homeowner Flood Insurance Affordability Act. These updates fix a great many of the problems from the 2012 Biggert Waters legislation, such as the sharp and near immediate increase in flood insurance rates. The changes taking place this week are a part of the gradual implementation of new and unsubsidized rates.
Highlights of the changes include:
- Updated premium rates conforming to HFIAA premium rate caps;
- Implementation of 25 percent rate increases for policies covering non-residential business properties;
- Increased Federal Policy Fee for all policies and increased Reserved Fund Assessment for Preferred Risk Policies (PRPs);
- New premium increases and rating procedures for PRPs, and policies rated under the Newly Mapped procedure;
- New base premium tables, replacing the previous premium tables, for PRPs and policies rated under the Newly Mapped procedure;
- Revised PRP/Newly Mapped Application form showing the premium calculations;
- Elimination of subsidies for certain pre-Flood Insurance Rate Map properties with policies that lapse and are reinstated;
- Clarifications concerning reformation of coverage; and
- Updated declarations page requirements.
Much more information and resources are available via this REALTOR® Info and Toolkit.