Offering easy living with all the comforts of luxury in this 5BR/4.5BA brick home in the Woods of Hillview. From the covered front porch, enter the two-story foyer with Palladium window and be
Big Flood Insurance Price Hikes Rescinded
Thankfully, Congress and the President just rescinded big parts of that law and decided homeowners and businesses shouldn’t face annual flood insurance bills that rise more than 18%-25% a year. (Here’s what we wrote about that rate increase.)
What’s the Takeaway for Homeowners?
1. Relief for those who purchased a property under the 2012 law. These folks typically saw rates jump immediately to the much higher ones, sometimes reaching tens of thousands of dollars per year. Many buyers weren’t told of the rate spike before purchasing the property.
In addition, many of the new quoted rates turned out to be mistakes: Homeowners were asked to pay more than was needed to cover the true risk of flooding in their areas.
Premium increases were so high and sudden that it was preventing homeowners from selling in some areas.
Now: The rates for those who bought under the 2012 law will reset to pre-2012 levels. And if you paid the higher rates, you’ll be refunded the amount in excess of the 18%-25% capped increase.
2. The revision grandfathers owner-occupied homeowners whose flood insurance bills rose suddenly when the Feds adjusted flood maps, putting those homes into higher-risk areas. For example, your home might have been built to 10-foot elevation standards. But then the area was remapped to 13 feet, causing huge premium increases.
Now: You’ll keep your lower rate even if your property is remapped since your house was built to the standards or the time. And if you sell, that rate transfers to the buyers.
Premiums will Still Rise
Of course, everyone’s premiums can still go up 18%-25% a year until you’re paying enough to make the National Flood Insurance Program self-sustaining.
But buyers won’t see rate increases at the closing table. And owners won’t see sudden jumps because of remapping. Rather, capped increases will occur annually when your policy renews. That means catching up to the full-freight rates could take decades.
What About the Financial Viability of the Flood Insurance Program?
To pay for the changes in the new law, homeowners will incur an annual surcharge on top of their premium:
- Owner occupants: $25 fee
- Investors and second-home owners: $250 fee
As the team leader for our group, my responsibility is to all of our clients to insure they are treated with respect and all of their needs are met. In addition I am the listing agent for the team hel....
Latest Blog Posts
Picking a color for one room can be challenging enough. But picking a palette for your whole house?That feels daunting. Coordinate your colors too much, you’ll end up matchy matchy.’
A strong housing market isn't necessarily all good news for sellers. As evidenced by Remodeling magazine's newly-released Cost vs. Value Report for 2018, average return on