In 2012 the Biggert-Waters Law passed providing a 5-year plan to continue flood insurance. The plan required that the National Flood Insurance Program charge actuarial rates for the insurance, resulting in a large rate increase for some consumers.
But late last week the Senate passed the Homeowner Flood Insurance Affordability Act, which should curtail the skyrocketing of insurance rates and premiums. The vote, which passed 72 to 22, gives final approval to the Homeowner Flood Insurance Affordability Act (HR. 3370). Now that it has passed the house, it goes to the President’s desk to await signature.
The real estate industry is praising the Senate for their supporting votes, and is optimistic that the new bill will ease the financial burden for homeowners recently affected by changes to the National Flood Insurance Program.
“Realtors applaud the U.S. Senate for passing the Homeowner Flood Insurance Affordability Act, H.R. 3370, to curb flood insurance rate hikes for homes and commercial properties,” said National Association of Realtors President Steve Brown in a recent statement.
“As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide, who are experiencing financial hardship because of the extreme and sudden premium increases. We believe this legislation will bring relief to property owners by ensuring a slow and steady phase in of risk-based increases.”