The Homeowner Flood Insurance Affordability Act

Last week, The Homeowner Flood Insurance Affordability Act was signed into law hard-fought legislation that will limit flood insurance premium increases.  The president’s signature finalizes a nearly two-year effort to combat large premium increases for millions of flood insurance policyholders. The increases resulted from a 2012 law intended to make the program solvent. But some of the increases were dramatic — double, even 10 times current premiums — threatening to make the program unaffordable to some middle-class homeowners.

The Homeowner Flood Insurance Affordability Act limits yearly premium increases to an average of 15 percent per year for each of the nine property categories listed by FEMA, and stipulates that no individual policyholder pay an increase of more than 18 percent per year.

As always, you can depend on Ken & Melody Kramer to keep you current with any and all changes to flood zones and real estate in your community.