New Flood insurance rates?

[vtsnowedin]

Just wondering if anybody here has had a big increase in their flood insurance rates as they phase in the Biggert-Waters act of 2012. It has made a lot of property in my New England town worth as much as 75% less then they were appraised for back before the real estate market crashed in 2008.

 

[Bird]

I am supposedly not in a flood area, but know many years ago, there was flooding in this general area, so I have flood insurance (not required by my mortgage holder and I don't guess they even know I have it). The premium did go up a bit last year and will be due a little later this month, so I'm waiting to hear from them.

 

[vtsnowedin]

If you are not in a high risk zone the rates were already based on risk potential and not subsidized. Those shouldn't go up very much. A much different story if you are in an A or V zone or are in an area where new flood maps have just included you.

 

[impdaddy]

This was changed by the homeowners flood affordability act of 2014. See link below for a summary.

H.R.3370 - 113th Congress (2013-2014): Homeowner Flood Insurance Affordability Act of 2014 | Congress.gov | Library of Congress

 

[vtsnowedin]

This was changed by the homeowners flood affordability act of 2014. See link below for a summary.

H.R.3370 - 113th Congress (2013-2014): Homeowner Flood Insurance Affordability Act of 2014 | Congress.gov | Library of Congress

This is a stopgap measure that does not change the long term outlook. True a new buyer no longer has to start paying the full rate immediately but can take over the previous owners policy and the annual increase scheduled. Over the thirty year life of a mortgage it makes little difference. It is like a variable rate mortgage where you know the rate will triple in a few years. FEMA does have to report back to congress in eighteen months (after the 2014 elections and before 2016) and more changes are likely. But for now prudent potential buyers are staying far away from any property that is in a flood zone.