Hundreds of thousands will experience the rate increases… we are your ‘one stop shop’ to save on flood insurance!
Gainesville, FL (PRWEB) December 16, 2014
Effective April 1, 2015, the first wave of FEMA rate increases resulting from the Homeowners Flood Insurance Affordability Act of 2014 (HFIAA) will be instituted. The HFIAA, which was signed into law on March 21, 2014, called for National Flood Insurance Program to limit rate increases to no more than 18% to any one policy with limited exceptions. However, FEMA has interpreted the HFIAA to allow for the total amount charged to the policyholder to increase an average of 19.8 percent for all 5.5 million FEMA policies and an increase of 37% for hundreds of thousands of certain policies.
The most notable exception is that older non-primary residences and older business properties will continue to see annual increases of up to 25%. However, because of a new mandatory $250 surcharge on all non-primary single family residences and 2 or more unit residences, hundreds of thousands of homeowners will see a premium increase of 37% as of April 1, 2015. This increase is 50% higher than the scheduled increases thought to be provided for in the HFIAA.
This new mandatory surcharge and the Federal Policy fee found on every FEMA flood insurance policy are not considered premiums by FEMA, and thus are not subject to the limitations described in the HFIAA. FEMA has admitted that as a result, the increase in the total amount charged to a policy may exceed 18%, which they will on April 1, 2015.