We would like to share a topic that is not yet well known, but will be. This is about legislation named the Biggert-Waters Flood Insurance Reform Act of 2012. Expect a lot of turmoil before it is fully enacted over the next few years as most legislators, and most certainly those insured are not aware of the ultimate cost. I guess we’ll have to open it to see what is in it, to paraphrase notable statement about other legislation.
A recent article presenting a summary of the changes-click Here -points out just how costly it could be, and provides an overview of the coming changes.
Extensive information is available at the site of Storm Smart Coasts.org http://stormsmart.org . Digging in to the details, it appears that rates for homes below the Base Flood Elevation will increase 25% yearly for 3 years unless it is a second home, in which case those increases will be made immediately upon annual renewal of the policy or sale. Subsidized rates for grandfathered non-conforming structures, those legally built below the BFE prior to the flood maps, will end by October 1, 2014 resulting in potentially substantial rate increases.
If you want a lot more detail from Storm Smart, go to Biggert Waters Impact.
This legislation may be altered, and several efforts are now underway in the House and Senate to do that. In the meantime, it is always smart to be a well-informed buyer or seller.
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