Principle Insurance, Inc.- Inside the Industry & Mind of an Agency Owner: March 2014

Breaking News: House passes Flood Insurance Bill

Next they will draft a final copy to send to the Senate where it has strong support.

Read more here

In a national article published in the Insurance Journal this week the House could vote on a bill to delay some of the looming Flood Insurance rate hikes.

Here is what the bill will accomplish if passed:

Provides retroactive refunds for people who have had large flood insurance rate increases due to the sale or purchase of a home
Will cap average annual premium increases at 15 percent
Will allow subsidies for insurance rates that are based on current flood maps
Adds non-mandatory language directing the Federal Emergency Management Agency to “strive to minimize the number of policies with annual premiums that exceed one percent of the total coverage.”
Requires FEMA to notify communities and members of Congress of remapping as well as models used in the mapping process.

The House bill’s main sponsor is Rep. Michael Grimm (R-N.Y.), though it has over 230 co-sponsors and it has notably even won the support of Rep. Maxine Waters (D-Calif.) who is one of the architects of the Biggert-Waters Flood Insurance Reform Act of 2012- which is what caused the increases in the first place.

The Independent Insurance Agents and Brokers of America is also supporting the bill and urging its members to contact their lawmakers to ask them to vote for it.

I understand that the drastic changes have caused panic in many homeowners, investors, and renters alike- I hope that my staying educated on what's going on in the market and on Capital Hill will help to put some minds at ease. Be sure to contact me with any of your questions or if you're interested in the private alternative in Flood Insurance.