Last week the Senate voted 72-22 to approve the bipartisan Homeowner Flood Insurance Affordability Act. The bill prevents flood insurance rate increases for property owners across the country, and the President is expected to sign the bill in to law when it reaches the White House. We’ve outlined the key points of the bill that will take effect once that final step is taken.
The Homeowner Flood Insurance Affordability Act:
- Repeals the Federal Emergency Management Agency’s (FEMA) authority to increase premium rates at time of sale or new flood map.
- Refunds the premium to those who bought a property before FEMA warned them of the rate increase.
- Limits premium increases to 18 percent annually on newer properties and 25 percent for some older ones.
- Adds a small assessment on policies until everyone is paying full cost for flood insurance.