Flood Insurance changes with the tide.
Under the Biggert Waters Act, new owners have to pay adequate actuarial rates. With the new rules, the change in rates will provide a gradual easing of rates for new owners until they reach the rate adequate premium.
Annual increases formerly 20%, are now between 5% and 18% and apply only to primary residences. There is no documentation on how the range of increases will be applied.
Secondary residences do not get the benefit of this to reform.
The increase in rates will Engine be 25% for non primary residences or those properties deemed to be severe repetitive loss properties.
In addition to rate increases, the new rules establish a surcharge for all homes built prior to the first flood map (Pre-Firm) which is 1974, of $25 for primary homes and $250 for Secondary or Seasonal.
Provides for refunds for those affected with large increases under Biggert Waters if the new rules result in a lower premium.
With so much confusion, we have not heard the last of this issue and the dollars that will flow to the federal deficit as a byproduct.