The Flood Insurance reform that consumers demanded will address the unintended consequences from last year's FEMA flood insurance overhaul.

Due to recent disasters which cost everyone billions, NFIP (National Flood Insurance Program of FEMA) had to revamp the program and bring it in line with actual risks; resulting in the 2012 Biggert-Waters Law. FEMA also updated the flood zone designations and flood maps causing hundreds of thousands to be cancelled and renewed at, in some cases, unreasonably high premiums and influencing real estate everywhere.

As of May 1, 2014, the 2014 Flood Insurance Affordability Act. comes to fruition. This Act allows a new property owner to assume the old policy at the old rate; plus it applies to second homes, businesses, and lapsed policies as well. It also grandfathers changes in mapping, and, perhaps most importantly, sets maximum annual rate increases at 18%.


There will be further information streamed to us as the Act is analyzed and understood by the industry and the large insurers get their regional agents out into the field to bring the local brokers and agents up to speed.

For more information on NFIP, go to

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