On July 6, 2012 the Biggert-Waters Flood Insurance Reform Act was passed. The purpose was to recover losses to the government’s National Flood Insurance Program resulting from hurricanes. The federal government is the only entity in the flood insurance business; however, policies are administered by insurance agencies.
Effective October 1, 2013, every flood policyholder will get a 10 percent increase in rates. Also, home owners who own or purchase older homes in flood zones may see much higher rates. If you have a mortgage on your home, then you are required to purchase flood insurance. If you are a cash buyer and do not have a mortgage, then it is up to you if you want to purchase coverage or not.
Flood insurance rates are based on a variety of factors. The elevation of your home is a key factor. If you are obtaining a mortgage, the insurance company will require an elevation certificate. Other factors include type of building, number of floors, flood techniques such as breakaway walls and flood vents, as well as the property’s geographic location.
Here is a link to the new National Flood Insurance Program rates and guidelines http://www.fema.gov/media-library/assets/documents/34620%20%28October%20... One of the best resources for information on flooding, flood risk, and residential coverage is www.floodsmart.gov. If you are unsure of what your policy covers and what your new rates may be, contact your insurance agent today. If you are thinking of purchasing a home and want to know what the rates will be, the FloodSmart.gov web site has a One-Stop Flood Risk Profile form where you can enter the address of the property and it will provide you with the property risk, estimate of premiums and insurance agents to contact.