President Obama recently signed HR3370 into law. Now the work will begin by the National Flood Insurance Program to determine how and when these items will be implemented. As the old adage goes, if you want it fast it won’t be good, if you want it good it won’t be fast. This will not be a quick process but instead will take many months of planning and programming. We will keep you informed as information becomes available.

The main factors of the bill are as follows:

  • Allows once again for “grandfathering” of policies that would have been terminated by section 207 of the BW 12 Reform Act
  • Prevents rates within a single property class from raising more than 15% in any one year and from raising more than 18% on individual policies per year. It also calls on FEMA to “strive” to reach the goal that premium is no more than 1% of a policyholders coverage.
  • Repeals the property sales trigger and the new policy sales trigger to pay full-risk rates.
  • Refunds homeowners that overpaid premiums based on BW12.
  • Higher deductible options for residential properties will be made available.
  • Implements an Annual Surcharge of either $25 for primary residence properties or $250 for non-residential or non-primary residential properties to be deposited into the Reserve Fund.

The items above are indications in HR3370, we are waiting for communication on how FEMA will interpret and implement the changes. We will continue to provide information as it is received. If you have any question, please call Flood Customer Service at 1-800-627-0000.

For more general information on flood insurance click here.

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