news from the American Land Title Association - thought you might be interested

On Friday, President Obama signed the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370) into law. H.R. 3370 helps ensure that property owners have access to affordable flood insurance and rolls back large flood insurance rate increases seen by many homeowners this year.

Most importantly, the law prevents the Federal Emergency Management Agency (FEMA, which manages the flood insurance program) from increasing premium rates when a property is sold or a new flood map is developed. The legislation also calls for refunds of some of the recent rate increases homeowners have paid. Further, it limits premium increases to 18% annually. To pay for these fixes, the bill requires policyholders to pay a $25 surcharge on residential policies and a $250 surcharge on the premiums for policies covering non-residential properties and non-primary residences.

flood insurance sticker shock

Perhaps you've already heard that FEMA has new rules for flood insurance.  We are getting reports that a new elevation certificate is required and these certificates are pricey.  Once the new quote comes in, it's higher than expected.  For instance one family selling their home told a buyer they were paying $400 per year for flood insurance.  Under the new system their buyer will have to pay $2300.

We are also hearing that there may be legislation moving to delay or change this new FEMA rule.  What have you heard?