The New, Modern National Flood Insurance Program (NFIP)

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How Flood Insurance Changes Might Affect You

As risks change, insurance premiums also change to reflect those risks.

Your flood insurance premiums may be going up.  However, you may be able to reduce your premium if you build your home or business to be safer, higher, and stronger.

The Biggert-Waters National Flood Insurance Reform Act of 2012 provides long-term changes to the National Flood Insurance Program.  Under the new law, rates are likely to increase overall to reflect the true flood risk of your home and many insurance discounts will be eliminated.

For example, rates for certain secondary homes in high-risk areas will increase 25 percent per year over the next four years starting in 2013.

Policy rates for all properties could increase based on one or all of the following circumstances:

  1. Change of ownership
  2. Lapse in coverage
  3. Change in risk
  4. Substantial damage or improvement to a building

Some changes will depend on external factors such as when flood risk maps are revised, buildings are damaged or improved, or when flood claims are filed.  Talk with your community officials and insurance agent to see how these changes could affect you.

 

 

Last Updated: 
01/25/2013 - 09:10