The Senate easily passed flood insurance legislation on March 13 by a vote of 72-22 after the House passed the measure last week. The bill heads to President Obama next for his signature and would ease the flood insurance premium rates that Congress enacted in 2012 as part of the Biggert-Waters Flood Insurance Reform Act.
In addition to slowing down the rate of premium increases overall, the legislation also reinstates the “grandfathering” provisions of the National Flood Insurance Program. This allows properties to maintain their current rates under certain conditions even when a new map reflects higher risk. And it also permits the transfer of a subsidized rate to a new owner at a property’s sale for one year before gradually increasing premiums each year until reaching an actuarial rate.
Annual surcharges would be levied on all policy holders to offset the cost - a $25 surcharge on primary residents, and a $250 charge on second homes, businesses and other non-residential properties.
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