By Megan Cooney, Marketing Assistant
Important Updates to Flood Insurance:
March 17, 2014: The U.S. Senate passed the “Homeowners Flood Insurance Affordability Act.”
The U.S. House of Representatives recently passed a bill that would help lower the cost of flood insurance. On Tuesday, March 4, 2014, the “Homeowner Flood Insurance Affordability Act” was passed in a 306-91 vote.
The new Grimm-Waters bill would help to relieve homeowners of the steep premium increases put into effect October 2013, due to the Biggert-Waters Flood Reform Act of 2012 (BW12). This new piece of legislation would repeal Sections 205 (bought/sold provision) and 207 (grandfathering) of the BW12 reform. A similar bill was passed by the Senate at the end of January that would delay Sections 205 and 207 of BW12 for four years.
The Senate has a scheduled recess the week of March 17, so a vote will likely be conducted the week of March 24.
Flood Insurance Facts:
- Flood insurance is a separate policy from your primary policy. Coverage can be purchased through your independent agent, backed by the Federal Emergency Management Agency (FEMA).
- In the past five years, all 50 states have experienced floods or flash floods, according to the National Flood Insurance Program (NFIP). NFIP is a government program that sets the flood insurance rates, meaning coverage will not vary between other insurance agents or companies.
- Typically, there is a 30-day waiting period before a flood insurance policy goes into effect. It is better to purchase flood insurance sooner rather than later, so in the event of a disaster you can receive the coverage you need when you need it.
- NFIP identifies flooding is the most common natural disaster. Everyone is considered to be living in a flood zone, although coastal areas are more prone to flooding than inland areas. Home and business owners with a mortgage that are located in high, or moderate-to-low risk flood zones are required to purchase flood insurance.
Be sure to follow McGrath Insurance Group online for continuous updates on the flood insurance reform. For more information on flood insurance, contact our McGrath Insurance representatives at 800-342-3859, or www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.