03 Apr NFIP premium rate increase
Posted at 16:53h in Uncategorized
Austin commented, “The premium increases are in line with what has been the norm over the past few years. Homes that were built prior to the introduction of flood maps (generally around 1974 in Mississippi) will generally see a higher increase than those that were built after maps were introduced. The newer homes typically have their ratings ‘grandfathered’ as long as they were built compliant with the elevation required at the time of construction.”
Austin offered the following advice: “When working with homes that have an existing flood policy in place, regardless of when it was built, it’s generally better for the buyer to assume the existing flood policy from the seller to ensure that the grandfathering remains in place.”
In the recently passed appropriations bill in Congress, Austin identified the following provisions that pertained to flood insurance:
- Includes a National Flood Insurance Program extension until July 31, 2018. This avoids another lapse of the program and adds several more months for the Senate to act on the 5-year reauthorization and reform legislation adopted by the House last November.
- Doubles funding for flood mapping to $263 million, up from $177 million in the previous year and more than a 150-percent increase over the Administration’s request earlier this year.
- Multiplies pre-disaster mitigation grant funding by 2.5 times (from $100 million to $249 million); these grants can be used for the flood proofing, elevation and strengthening of properties against future floods.
- Maintains funding for the Office of the Flood Insurance Consumer Advocate at $5 million to assist homeowners with their concerns over flood mapping and/or insurance ratings.