Flood Insurance Extension Welcome News for Florida Homeowners
Residents owning property in the Lake County FL real estate got welcome news from Washington D.C. as President Obama signed into law H.R. 4348. One of the provisions of 4348 is to extend the National Flood Insurance Program (NFIP) for another five years. So until 2017, south Florida residents will not have to worry about a lack of flood insurance keeping them from losing their home due to a lack of insurance.
A Big Deal
The Florida Division of Emergency Management states that Florida has over 2 million flood insurance policies since the fourth quarter of 2011. This represents almost 37% of the all NFIP policies nationwide. It also represents how a staggering 97% of Florida communities fall under this program. The National Association of REALTORS® stated how the signing of H.R. 4238 brings certainty back to the 21,000 communities across the nation who depend on flood insurance to be eligible for a mortgage.
Changes to the Law
H.R. 4238 also makes many major changes to how NFIP works. Some of these changes to the existing rules are:
- New way to determine if storm damage to a property is due to water (NFIP) or wind (private).
- Stops subsidies for home not insured by the NFIP to include home who had NFIP but had the police lapse.
- Allows for an increase of 20% in flood insurance premiums over the previous 10%. Allows for installment payments
- Does away with rate subsidies on major repetitive loses on the same property.
- Improved the accuracy of floodplain maps to insure proper protection.