On Jan. 30, 2014, the United States Senate voted to approve the Homeowner Flood Insurance Affordability Act. What does this mean for the real estate market? Keep reading to find out the five things we think you should know about this new bill.
- This legislation calls for a 4-year timeout on rate increases triggered either by a property’s sale or a flood map update for a property with previously grandfathered rates.
- The bill also creates a flood insurance advocate within the Federal Emergency Management Act (FEMA) to investigate home owner complaints of multiple different or excessive rate quotes.
- Supporters of the bill warn that unless flood insurance premiums are delayed, many Americans will be forced to surrender their homes and small business because they cannot afford coverage.
- The Senate vote sends the bill to the House of Representatives, where the bill remains 30 votes shy of a House majority.
- The National Association of REALTORS® is redoubling their efforts to persuade the House leadership to bring a similar bill up for a floor vote at the earliest opportunity.
To learn more about the bill, and to follow its progress through the House of Representatives, please visit Congress.gov.