Florida homeowners saddled with recently raised flood insurance premiums will have much of that burden lifted now that President Obama signed a flood insurance bill that the Senate passed March 13.
Just to hit the highlights of H.R. 3370, of particular note is the bill no longer requires the cost of flood insurance to readjust upon the sale of a home in an area where the Federal Emergency Management Agency (FEMA) subsidizes policies. The purchaser is treated the same as the current property owner. Also, all post-FIRM (flood insurance rate map) properties built to code at the time of construction are protected from rate hikes that result from new data – the flood maps created after the fact.
Also important: The grandfathering stays with the property, not the policy. Finally, FEMA cannot raise flood insurance rates within a single property class beyond 15 percent per year. And it cannot raise a single homeowner’s rate more than 18 percent per year.
If you would like more information, call me and I would be happy to answer any questions you may have.