Flood Insurance Update from NAR
In a statement sent by today by National Association of REALTORS® Communications Director, Government Affairs John DiBiase announced that 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 October 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:
NAR Frequently Asked Flood Insurance Questions:
NAR Legal Guidance on what to tell clients:
FEMA Bulletin W-14014 (dated April 15th):
FEMA Bulletin W-14016 (dated April 24th):
NAR Implementation Survey:
Tags: Biggert-Waters, FEMA, Flood Insurance Rates