Monday, June 2nd, 2014 by Matt Bauman
***UPDATE: Biggert Waters Flood Insurance Reform Act of 2012 (BW-12) - Next Changes Coming Oct. 1, 2013.
In 2012, U.S. Congress passed BW-12 which calls on FEMA and other agencies to make a number of changes to the way the NFIP is run. The new law eliminates some artificially low rates and discounts which are no longer sustainable. Most flood insurance rates will now move to reflect full risk, and flood insurance rates will rise on some policies. The most common solution will be to install flood vents to bring the building into compliance.
The national average for flood insurance on a home in compliance is $583.00, if your home is not in compliance you may already be paying a lot more, and Oct 1st rates are set to increase again. Some homes that were never required to have flood insurance will now be required to do so. These homeowners are at an even greater risk of paying higher rates as it is very likely these homes are not in compliance on any level.
? Actions such as buying a property, allowing a policy to lapse, or purchasing a new policy can trigger rate changes. You should talk to your insurance agent about how changes may affect your property and flood insurance policy. There are investments you and your community can make to reduce the impact of rate changes.