CHANGES TO FLOOD INSURANCE RATES

The National Flood Insurance Program is changing. The Biggert- Waters Flood Insurance Reform Act of 2012 (BW-12) reauthorized the National Flood Insurance Program (NFIP) and outlined reforms to make the program more sustainable, including the removal of long-standing subsidies. The first phase of rate increases (Section 100205) affects many policyholders who own homes built before the community adopted its first Flood Insurance Rate Map (FIRM). Many of these policyholders historically have paid subsidized rates that do not reflect the property’s true risk. Follow my next blog to find out WHO PAYS SUBSIDIZED RATES?