FEMA's new Flood Insurance Rate Increase has caused much anxiety and confusion in areas in and around the new flood maps. Real estate values and purchase transactions for homes in the new flood zones have been significantly impacted. The effect on insurance premiums has been drastic for homes in flood zones.
It is obvious to many that FEMA did not properly analyze the effect on these areas, and their economies, before promulgating the new flood maps. Legislators have been banging the drum for relief for months. Finally there is some relief, if only temporary. The Homeowner Flood Insurance Affordability Act was recently signed into law:
The Homeowner Flood Insurance Affordability Act repeals FEMA’s authority to increase premium rates when a property is sold. It also 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 percent annually on newer properties and 25 percent for some older ones. The senate approved the bill on March 13, and the House of Representatives March 4.
Here’s a link to more information:
Obama signs Flood Insurance Relief Law for Cape Cod