On March 21, 2014, President Obama signed the Homeowner Flood Insurance Affordability Act of 2014 into law.
This law repeals and modifies certain provisions of the Biggert-Waters Flood Insurance Reform Act, which was enacted in 2012, and makes additional program changes to other aspects of the program not covered by that Act. Many provisions of the Biggert-Waters Flood Insurance Reform Act remain and are still being implemented.
HFIAA requires gradual rate increases of 5% to 15% on properties now receiving subsidized rates instead of immediate increases to full risk rates as happened under Biggart-Waters. These gradual rates start October 1, 2014. However there are exceptions to these general rules and limitations also. Older commercial properties, non-residential properties, severe repetitive loss properties and buildings that have been severely damaged that now have subsidized rates will continue to see up to a 25% annual increase until they reach their full risk rate.
Contact Beacon Agency to find out how these changes impact you.