iLeads.com Blog: FEMA

<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEha-g8MQPQ6YumkzUDXRrb-7mZlOlcq4GhggM_D-TQ3ktV9_msKr-AmYKjOkUB8-GIshT6DW2fWyr_ZDT5eJGMg5nxmYNk4DPRSJM8t0wy_PWd0tqH1KcJd_6ydwlEv1ruhAoo91NKJpzs/s1600/Senate+Votes+against+Flood+Insurance+Hikes.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEha-g8MQPQ6YumkzUDXRrb-7mZlOlcq4GhggM_D-TQ3ktV9_msKr-AmYKjOkUB8-GIshT6DW2fWyr_ZDT5eJGMg5nxmYNk4DPRSJM8t0wy_PWd0tqH1KcJd_6ydwlEv1ruhAoo91NKJpzs/s1600/Senate+Votes+against+Flood+Insurance+Hikes.jpg" width="320" /></a></div>
<span style="font-family: Calibri;">Insurance professionals may be interested to know
that the US Senate has voted against flood insurance reforms. The bill,
Homeowner Flood Insurance Affordability Act of 2013, will effectively curb any
increase in flood insurance premiums. It was passed on March 4. </span><br />
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill amends a few provisions of the 2012 Biggert-Waters
Flood Insurance Reforms Act, which caused premiums to go up in certain areas of
America.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill also reinstates government subsidies for
properties that were purchased and sold before the Flood Insurance Rate Maps
(FIRM) were available.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The Menendez-Grimm bill will now go to President
Obama. The White House, however, has expressed concerns about rolling back some
of the flood insurance reforms proposed by Biggert-Waters.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">While the new bill had the backing of realtors,
builders, lenders, and homeowners; some taxpayer and environmental groups were
against it. In addition, the new bill will prevent the entry of private
insurers into the flood insurance market. Private insurance companies have been
demanding the abolition of subsidized rates for a while.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The National Association of Mutual Insurance
Companies (NAMIC) said that it was disappointed by the bill. Independent
agents, on the other hand, supported the bill. Rate hikes will make flood
insurance unaffordable. It may also cause a drop in home values.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">Here is a summary of the bill.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill prevents premiums from going through the
roof. There is a ceiling on annual rate hikes. The bill prevents FEMA from increasing
the average premiums for a particular kind of properties beyond 15 percent. The
premiums on individual policies cannot be increased by more than 18% per year.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill repealed Biggert-Waters provision which
required property buyers to pay full-risk premiums for properties bought and
sold before flood maps were available. This provision had caused property
prices to drop and affected the realty sector.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">Grandfathering<o:p></o:p></span></b></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill reinstates grandfathering. If this was
abolished, property owners in high risk areas would either have to elevate
their home or pay higher premiums. The new bill also asks FEMA to refund
insurance policyholders who overpaid their premiums.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">Affordability<o:p></o:p></span></b></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill requires FEMA to limit the number of flood
insurance policies whose annual premiums exceed 1% of the total flood coverage
offered by the policy.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">Extra
features<o:p></o:p></span></b></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill gives FEMA the right to use the National
Flood Insurance Funds to reimburse policyholders who appeal a map finding
successfully. </span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">The bill also provides for the establishment of a
Flood Insurance Advocate. The Flood Insurance Advocate will answer
policyholders' questions about flood mapping processes and flood insurance
premiums. </span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">Urban
mitigation fairness <o:p></o:p></span></b></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">This provision requires FEMA to suggest guidelines
on alternative methods to mitigate risks where traditional methods are not
practical.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">Clear
communication<o:p></o:p></span></b></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">FEMA has to communicate full flood risks to
policyholders regardless of whether they pay full-risk premiums or not. This
helps them assess their full flood risk.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">FEMA has to report to US Congress what impact rate
hikes will have on small businesses, places of worship and non-profits whose
values are less than 25 percent of area median property value.</span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<b style="mso-bidi-font-weight: normal;"><span style="font-family: Calibri;">Mapping
accuracy<o:p></o:p></span></b></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt; mso-margin-top-alt: auto;">
<span style="font-family: Calibri;">FEMA has to certify that its mapping processes are
technologically sophisticated. It also has to prove that the mapping models it
uses to create the flood map of an area are appropriate. FEMA has to make the
underwriting guidelines and rate tables publicly available. </span></div>
<br />
<div class="MsoNormal" style="line-height: normal; margin: 0in 0in 0pt;">
<span style="font-family: Calibri;"><span class="fblongblurb">Get your share of the $1.5 trillion in
Adjustable Rate Mortgages scheduled to reset this year! </span>Imagine having
up to a 20% funding rate at a low, cost effective price per lead! With our ARM
plus leads, you can. Get in touch with </span><a href="http://www.armsource.com/"><span style="color: blue; font-family: Calibri;">ARM
Source</span></a><span style="font-family: Calibri;"> today!</span></div>

Senate Votes against Flood Insurance Hikes

Insurance professionals may be interested to know that the US Senate has voted against flood insurance reforms. The bill, Homeowner Flood ...

iLeads.com Blog

Senate Votes against Flood Insurance Hikes

Popular Posts

Home Value Posts

Related Posts