Homeowner Flood Insurance Affordability Act passes, freezes premiums
WASHINGTON D.C. - U.S. Senator David Vitter (R-La.), along with other lead authors led the passage of the Homeowner Flood Insurance Affordability Act, bipartisan legislation to address rate spikes in national flood insurance costs due to the implementation of the Biggert-Waters Flood Insurance Reform Act of 2012.
The bill freezes flood insurance premium increases for certain properties until the Federal Emergency Management Agency completes its affordability study and a subsequent regulatory framework to correct flood maps.
An affordability study is required under Biggert-Waters and but has not been completed.
The following properties would qualify under the bill:
- All "grandfathered" homes and businesses that were built to code in accordance with maps at the time but are now remapped into a higher risk area.
- New policies purchased after July 6, 2012 if the new policyholder is not legally required to purchase insurance.
- Properties sold after July 6, 2012, giving new homeowners and business owners the same treatment as previous owners unless they trigger another provision in Biggert-Waters.
On Oct. 1, 2013, over four million homes and business owners in the United States saw their flood insurance skyrocket because of faulty provisions in the Biggert-Waters Flood Insurance Reform Act of 2012.