National Flood Insurance Rules Begin May 1

The following information is from the National Association of REALTORS®

 

Effective May 1, 2014, all buyers of older properties (“pre-FIRM”) will see a premium rate reduction under the Homeowner Flood Insurance Affordability Act of 2014. 

Instead of jumping to “full cost” for flood insurance, buyers will assume the seller’s Oct-2013 rate for a pre-FIRM property.

 

NAR prevailed upon FEMA to implement this provision seven months early.  FEMA also extended the rate relief so all pre-FIRM properties

(including the second homes and businesses) will begin paying Oct-2013 rates when they purchase or renew their flood insurance after May 1, including:

  • ALL buyers of a pre-FIRM property, not just those whose seller has an existing policy;
  • ALL recent owners who apply for a new flood insurance policy on a pre-FIRM property;
  • ALL recent owners who reinstate an old pre-FIRM policy that previously lapsed for any reason;
  • ALL recent owners who renew a policy on a pre-FIRM property bought or newly insured after the 2012 Biggert-Waters law.

 

While expediting the rate relief, FEMA must still issue refunds to all those who paid more than their Oct-2013 rate

NAR will continue working with FEMA and Congress to quickly issue these refunds to anyone overcharged for flood insurance under Biggert-Waters.

 

NAR Flood Insurance Resources on the Web

NAR Flood Insurance Webpage:

http://www.realtor.org/topics/national-flood-insurance-program-nfip

 

FEMA Bulletin W-14014 (dated April 15th): http://www.ksefocus.com/billdatabase/clientfiles/172/4/2003.pdf

 

FEMA Bulletin W-14016 (dated April 24th): http://www.ksefocus.com/billdatabase/clientfiles/172/4/2021.pdf

 

NAR Implementation Survey: https://survey.vovici.com/se.ashx?s=2D55F0781086FB83

 

NAR Frequently Asked Flood Insurance Questions:

http://www.realtor.org/topics/national-flood-insurance-program-nfip/homeowner-flood-insurance-affordability-act

 

NAR Legal Guidance on what to tell clients: http://www.ksefocus.com/billdatabase/clientfiles/172/4/1816.pdf

For Further Information Please Contact:

John DiBiase

Communications Director

Government Affairs

National Association of REALTORS®

jdibiase@realtors.org

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Published by Angie Hedgepeth

Angie Hedgepeth, Government Affairs Director for the Association, attends all the local meetings each month, as well as NAR and NCAR meetings, and keeps members abreast of the multiple issues being addressed in local, state and national government. She prepares reports on the meetings she attends and they are included in the weekly "Government Affairs Update".