Flood Insurance News

Not only does flood insurance protect your home and belongings against flood damage, you’ll be reimbursed for time and money spent when you sandbag your home, move furniture and remove debris.



April 21, 2014


The National Flood Insurance Program has announced that the following changes of the new Act will be implemented on all policies as of May 1, 2014:

  • New policies for Pre-FIRM homes will be written with grandfathered Pre-FIRM rates. This includes new purchases.
  • Renewal of policies purchased after July 6, 2012 for Pre-FIRM policies will be processed with grandfathered Pre-FIRM rates.

This is great unexpected news, as the original bill gave up to 16 months for changes to take effect.

To see the complete document from the National Flood Insurance Plan, click Here.


Homeowners Flood Insurance Affordability Act – President Signs Bill

March 21, 2014


Click Here for Summary Document

This bill will call for another dramatic overhaul of the National Flood Insurance Plan Manual, not to mention the programming changes of rating systems.  I cannot imagine anything changing for months. I do not yet have all of the details of the changes, but the summaries I have seen include the following major changes:

  • Return of grandfathered “pre-firm” rates for pre-firm constructed homes.
  • Grandfathered “pre-firm” rates will apply to new owners of sold homes as well.
  • Refunds to policyholders who were required to pay actuarial rates for pre-firm homes on new policies written since June 6, 2012.
  • Rate increase caps at 18% per year for primary homes and 25% per year for non-primary homes.

This is great news for those buying or selling an older home. Current primary homeowners will get a little relief as far as a lowering of 25% annual rate increases to 18% rate increases. I will post another update as soon as we have some more definite changes and effective dates.


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