The Federal Emergency Management Agency (FEMA) has sent new insurance premium rate sheets to insurers that reflect changes made by Congress to the National Flood Insurance Program (NFIP). The new premiums for subsidized policyholders generally show increases from 5 to 18 percent—significantly less than the increases that initially resulted from the 2012 Biggert Waters Law.
New premiums, resulting from the Homeowner Flood Insurance Affordability Act of 2104 passed by Congress in March, limit annual rate increases to no more than 18 percent for individual policies. These new rates take effect on October 1.
While flood insurance rates are set to rise, these are still significantly less for many homeowners who saw increases that were double, triple and even 10 times higher than previous premiums after Biggert Waters took effect. Policyholders who were hit with immediate rate increases—those who purchased homes after Biggert Waters took effect or had let their flood insurance policies lapse—can expect refunds.
CAP has been actively involved in advocating for changes to the National Flood Insurance Program with Congressman Bradley Byrne and in partnering with the Coalition for Sustainable Insurance. We sponsored numerous forums, including hosting David Miller, FEMA’s associate administrator for the federal insurance and mitigation administration, to address our local elected officials and congressional delegation. CAP will continue to monitor this and other insurance issues affecting our region.