Monday, November 11, 2013

Flood Insurance Hike?

Another assault on the pocket book of home owners!

The Federal Flood Insurance program is under the gun to raise rates. It has been in the news since Super Storm Sandy as it put a heavy hit upon the federal program.  It also was the focus of some scrutiny on
the lack of coverage for major storms and lack of homes covered in flooded areas.  It isn't surprising that massive storm is causing those concerned with this matter to have second thoughts or seeking to revise the program

The update below from Al Clark gives you a sense of what is going on presently!


Lawmakers Try Slow Flood Insurance Premium Hikes

A bipartisan group of federal lawmakers hopes to slow down or halt big increases in homeowners flood insurance premiums.

They've introduced legislation that would delay rate increases for up to four years and make changes in the law that forced up the cost of federal flood insurance - The Biggert-Waters Flood Insurance Reform Act.

Flood damage typically isn't covered by homeowners insurance.

The National Flood Insurance Program (NFIP), run by the Federal Emergency Management Agency (FEMA) is generally the only flood insurance available to homeowners, even though flooding is the most common natural disaster and occurs in all 50 states.

The original flood reform bill's namesake, Rep. Maxine Waters, recently introduced The Homeowner Flood Insurance Affordability Act (H.R. 3370) to correct flood insurance problems. Senators Robert Menendez (D-NJ) and Johnny Isakson (R-GA) introduced a companion bill in the Senate.

"FEMA's poor implementation, inaccurate mapping and incomplete data has led to unreasonable and unimaginable increases in premiums," Waters said.

"This legislation would ensure that FEMA undertakes program changes in a way that will not cause harm, by delaying implementation until it provides Congress the facts on how rate increases will affect homeowners. It will also give us the information we need to go through the program piece-by-piece and fix any outstanding affordability issues."

Other lawmakers are tackling the flood insurance issue, too:

Florida Republican Congressman Gus M. Bilirakis' Homeowners Flood Insurance Relief Act (H.R. 3312) would cap premiums and phase in rate increases over 10 years. Homeowners would get to pay premiums monthly instead of annually.

Massachusetts Attorney General Martha Coakley's proposal would cap premiums and limit the amount of flood insurance your mortgage lender could make you purchase. Under her proposal, your mortgage lender couldn't forced you to buy a flood policy covering more than the outstanding amount of your loan or to cover the contents of your home.

Florida Insurance Commissioner Kevin McCarty plans to make it easier and more appealing for insurance companies to offer private flood insurance in his state.

Courtesy of Al Clark's HomeActions Newsletter
Post a Comment