A Life Preserver for Beach Homes
If you have a waterfront or flood-zoned property, we have good news for you.
Last December, we told you about significant increases in flood insurance premiums for homeowners in flood zones. The increases were mandated by the Biggert-Waters Act passed in July 2012 and designed to help the National Flood Insurance Program (NFIP) work down some of its $24 billion debt.
The reality of skyrocketing flood insurance costs for homeowners got Congress’ attention, however, and last March they passed the Homeowner Flood Insurance Affordability Act. The Act reversed many of the rate hikes for homeowners and capped future rate hikes at 18 percent.
These actions, while not solving the NFIP debt, keep the cost of insuring a flood-zoned or waterfront property from pricing homeowners and potential buyers out of the market.
More information about the Homeowner Flood Insurance Affordability Act is available here.
Please call us if you have any questions about flood insurance coverage.