New Changes in Flood Insurance

Don’t let your flood insurance policy lapse! New changes on the horizon!

National Flood Insurance Program (NFIP) changes via the Biggert Waters Flood Insurance Reform Act of 2012:

  • Starting October 2013 Flood insurance rates will be adjusted to reflect true risk. (Note: There is a new Bill before Congress that would extend the Biggert Waters Reform Act requirements another 4 years.)
  • Flood maps are being redrawn all over the country.

When people buy a home, one of the fees a lender charges is for a flood plain search (approximately $90). The Buyer knows right away if the home they are purchasing will require flood insurance as part of the loan.

The lender will hire an outside company who determines if the home being purchased is in a flood zone, either now or, using new mapping, sometime during the life of the loan. They will provide the flood certification to the lender at the time of purchase.

If currently in a flood zone, or determined to be in the future through new mapping, Lenders will be sending out notices of these changes.

Here is FEMA’s web site with additional information;
http://www.fema.gov/flood-insurance-reform-act-2012

The NFIP was created by Congress in 1968 to provide flood insurance to homeowners in response to private insurance companies not covering flood disasters. NFIP is managed by FEMA (Federal Emergency Management Agency).

Additional information