Since there are still so many worthy concerns about Flood insurance, I thought I would mention that the U.S. Senate has been fighting to and will soon vote on legislation to put a delay on rate hikes in flood insurance premiums on primary residences until FEMA completes an affordability study. Unfortunately, if the vote passes, the bill would not stop rate increases for most business properties, secondary homes or repeat flood properties. Rates on those properties will increase by 25% until they reach the actual cost of the risk.
For those of you that are unaware, Congress approved the Biggert-Waters Act in 2012 to address the flood insurance program’s $28 billion deficit. The Act was passed to phase out subsidized rates (rates not reflecting factors that accurately risk a risk including the elevation of the lowest floor of the building) and to eliminate rate subsidy on such risks as new policies being purchased in a Special Flood Zone.
Contact us at (516) 484-5200 to learn more about flood insurance and how you may be impacted — especially if you want to buy or sell a home in a Special Flood Zone Area.