Flood insurance changes deemed ‘murky’

TS_178011209_360x235_72DPI_RGB

WASHINGTON — On March 21, President Obama officially signed the Homeowner Flood Insurance Affordability Act of 2014 into law, according to the Daily Commercial.

The Homeowner Flood Insurance Affordability Act basically slows down the rate of increase by instructing FEMA to increase premiums for most subsidized properties by no less than 5 percent and no more than 18 percent annually, the article stated.

According to the article, the Act removes the mandate of automatic full-rate increases when a property is transferred; however, the newly acquired property is still subject to yearly increases.

The new law creates a $25 surcharge for all residential flood insurance policies and a $250 surcharge on other properties to offset the subsidized policies in flood zones, the article noted.

This is the federal government’s attempt to cover costs, but the numbers simply do not add up, the article added.

Click here to read the article in its entirety.

Cleanfax Staff

Cleanfax provides cleaning and restoration professionals with information designed to help them manage and grow their businesses.

Follow Cleanfax Staff

Related Posts

Share This Article

Join Our Newsletter

Expert Videos

Popular Content

CoreLogic

CoreLogic: Spearheading Innovation and Technology in the Restoration Industry

Insurance_Webinar_600x300_CF

Insurance Restoration Strategies Unlocked: How to Identify & Conquer Top Challenges in the Industry

AI sales

Is AI Going to Be the Death of the Salesperson?

Grow your social media

The Digital Marketing Demystified Series—Part 2: Grow Your Business with Social Media

Digital Marketing - Part 1

The Digital Marketing Demystified Series—Part 1: World Class Email Marketing

Polls

As a restoration contractor, does it concern you that some insurance companies are dropping coverage in certain states, such as California and Florida?

View Results

Loading ... Loading ...