FLOOD INSURANCE UPDATE

Please read below for latest update from FEMA regarding flood insurance. And i need to speak my peace. Notice what they call the law….the Homeowners Flood Insurance Affordability Act. The federal government thinks all of us Americans are pin heads. They think they can put the word “Affordabilty” in all their legislation and all of us regular Joe’s think they are helping. They used that same word in our new health insurance plan as well. Now premiums are skyrocketing and the deductables are at $6000. Pretty soon and only the rich will be able to afford health insurance. The rest of us will decline and take the penalty because our budgets can’t handle even the premium, much less the deductable. What a mess. There is nothing affordable to the American people in anything our government attempts to do. Just like health insurance, they need to privitize flood insurance and the rates will come back down.   

FEMA issues flood insurance update

 

 

WASHINGTON – April 4, 2014 – On April 3, the Federal Emergency Management Agency (FEMA) issued a memo that outlined the steps it’s taking to implement the Homeowner Flood Insurance Affordability Act of 2014. 

The seven-page memo issues instructions to private insurers who issue flood insurance policies on FEMA’s behalf. 

The overriding message for homeowners and buyers: Be patient. They may not receive the lower rate under the new law immediately. Homeowners facing a high bill are advised to pay it and wait for a rebate rather than go without flood coverage.

If you currently have a flood insurance policy in effect and it’s time to send in a renewal payment, “under no circumstances should you allow that policy to lapse” while waiting for clarity on how the new flood insurance law will impact it, advises Lisa S. Jones, a flood insurance specialist with Carolina Flood Solutions and consultant to the National Association of Realtors® (NAR).

“FEMA is working with Congress, the private Write Your Own insurance companies (private companies that act as intermediaries selling flood insurance policies) and other stakeholders to implement these Congressionally mandated reforms,” says Dennis Kuhns, FEMA’s director of the Risk Insurance Division.

However, Kuhns also says, “It is not possible for changes to happen immediately. While the new law does require some changes to be made retroactively – applying to certain policies written after July 6, 2012 – other changes require establishment of new programs, processes and procedures.”

It’s the “programs, processes and procedures” that will take time, and FEMA offers no solid dates, only that more information “will be forthcoming.”

However, FEMA echoes Jones’ advice for homeowners: Pay your flood insurance bill even if it’s still over-priced rather than wait for clarity on the lower rates authorized by the new flood law.

“FEMA does NOT recommend cancelling a flood insurance policy,” Kuhns said in the letter. “Cancelling flood insurance policies now will leave policyholders unprotected during spring flooding, and may cause policyholders to lose important discounts on their rate if they reinstate in the future.”

The complete FEMA letter and memo is posted online in Florida Realtors Flood Insurance Toolkit.

© 2014 Florida Realtors®