Big news for property owners! The “Homeowner Flood Insurance Affordability Act” has just been signed into law. This new law changes Federal Emergency Management Agency (FEMA) processes and holds them accountable for past implementation issues.
People who purchased a property before FEMA warned them of the huge rate increase will receive refunds of the excessive premiums they were charged – could take up to 18 months to receive. The law repeals FEMA’s authority to increase premium rates when a property is sold or the area’s flood map is revised. It also limits premium increases to 18% annually on newer properties and 25% for some older ones.
The law eases homeowners into paying full cost for flood insurance by adding a small assessment on policies each year instead of hitting them with the increase all at once.