Call Us Call or Email Us Today
Homeowners Insurance HOME Read More
Auto Insurance AUTO Read More
Renters Insurance RENTERS Read More
Business Insurance BUSINESS Read More
Life Insurance LIFE Read More
Watercraft Insurance WATERCRAFT Read More

Effect of Biggert-Waters

In order to ensure that flood insurance rates more accurately reflect the risk, Biggert-Waters phases out subsidized rates for non-primary (secondary) residences such as a vacation home occupied only during the summer months. Subsidized rates for other property classes are also being eliminated over time, beginning in late 2013.

These subsidies will be phased out by imposing a 25 percent premium increase every year until rates increase the true risk. These changes will affect the following property owners.13

  • Owners of non-primary (secondary) residences in an SFHA
  • Owners of business properties in an SFHA
  • Owners of property that has experienced severe or repeated losses

The owners of primary residences located in SFHAs will retain their subsidized rates unless or until one of the following conditions occurs.

  • The property is sold.
  • The policy lapses.
  • The property suffers severe repeated flood losses.
  • A new policy is purchased.

Grandfathered rates are to be phased out for most properties whenever a community adopts a new FIRM. The phase-out will happen gradually over a 5-year period, with a 20 percent rate increase each year.14

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
Facebook
Twitter
LinkedIn
Blog
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
Carriers
© Copyright. All rights reserved.
Powered by Insurance Website Builder