President Obama Signs the Homeowner Flood Insurance Affordability Act of 2014
On Friday, March 21st, HR3370, also known as the Homeowner Flood Insurance Affordability Act of 2014 was signed and approved by President Obama. This bill introduces changes to the NFIP (National Flood Insurance Program) that would address some of the unintended consequences resulting from the implementation of the Biggert-Waters Reform Act of 2012 (BW12).
Some of the major elements that Homeowner Flood Insurance Affordability Act of 2014 looks to address include:
• Preventing FEMA from raising average rates above 15% for a class of properties and above 18% on individual policies per year.
• Rescinding provisions in BW12 requiring policyholders to pay the full-risk rate for Pre-FIRM properties at the time of purchase.
• Rescinding provisions in BW12 requiring Pre-FIRM property owners to pay the full-risk rate if they voluntarily purchase a new policy.
• Rescinding provisions in BW12 terminating grandfathering.
• Requiring FEMA to refund policyholders for ‘overpaid’ premiums.
At this time, FEMA and the NFIP are actively working to analyze the changes this new law brings and determine how each element will be implemented, however industry analysts believe it may take 12-18 months to implement those changes and to begin issuing any refund checks.
SSIA will continue to monitor updates to this program, and share them here and on our social media sites.