Many homeowners living in a designated flood zone have seen flood insurance premiums skyrocket after 2012 federal changes went into effect. In March of 2014, President Barack Obama signed new legislation to attempt to alleviate some the burden from these homeowners.
The 2012 flood insurance program changes included a re-examination of the areas designated as flood prone and a redrawing of the flood zone maps. The changes also attempted to wean homeowners off of plans with subsidized premiums by allowing insurers to raise rates to the actual cost of the insurance over the following five years. For some home owners, this resulted in unaffordable increases.
Obama’s recent updates to the bill set limits on flood insurance premiums to prevent skyrocketing costs. In addition, the new bill allows flood rates that are lower than market value to be passed on to new home purchasers. Protection was also provided for those whose homes were previously not in a flood zone but were after the 2012 remapping. The new cap for these homeowners allows for no more than an 18 percent insurance increase per year.
For more information about affordable insurance options in Idaho please contact Idaho Insurance, located in Caldwell.