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WASHINGTON — On March 21, President Obama officially signed the Homeowner Flood Insurance Affordability Act of 2014 into law, according to the Daily Commercial.
The Homeowner Flood Insurance Affordability Act basically slows down the rate of increase by instructing FEMA to increase premiums for most subsidized properties by no less than 5 percent and no more than 18 percent annually, the article stated.
According to the article, the Act removes the mandate of automatic full-rate increases when a property is transferred; however, the newly acquired property is still subject to yearly increases.
The new law creates a $25 surcharge for all residential flood insurance policies and a $250 surcharge on other properties to offset the subsidized policies in flood zones, the article noted.
This is the federal government’s attempt to cover costs, but the numbers simply do not add up, the article added.
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