President Obama signs flood insurance bill: provides relief for homeowners

Today (Friday, March 21) President Obama signed the Homeowner Flood Insurance Affordability Act that was recently passed Congress.

Obama Signs Relief From Flood Insurance Hike
WASHINGTON March 21, 2014 (AP)
By NEDRA PICKLER Associated Press

The new bill further reins in and holds the Federal Emergency Management Agency (FEMA) accountable for the Biggert-Waters implementation issues.

As passed:

  • The bill repeals FEMA’s authority to increase premium rates at time of sale or new flood map, and refunds the excessive premium to those who bought a property before FEMA warned them of the rate increase.
  • The bill limits premium increases to 18% annually on newer properties and 25% for some older ones.
  • Additionally, the bill adds a small assessment on policies until everyone is paying full cost for flood insurance.

 

Click here to read our post from last week that includes additional materials about the changes.