Congress recently passed the Flood Insurance Reform Act of 2012 (Biggert-Waters) and the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) which result in many important changes to the National Flood Insurance Program (NFIP). that will be effective on April 1, 2015 and will affect Flood Insurance premiums.
The NFIP defines special high-risk flood hazard areas as those with at least a 1 percent chance of annual flooding. Under Biggert-Waters, premium rates on many properties in these special flood hazard areas increased. Rates for nearly all buildings located in special flood hazard areas will be revised over time to reflect full flood risks. In addition, recent legislation phases out subsidies for some buildings in high-risk flood areas. As a result, rates for some older buildings will rise until they reach full-risk rates. In addition, all policyholders will be subject to new assessments and surcharges.