This week, FEMA announced implementation of a Homeowner’s Flood Insurance Affordability Act of 2013 provision that would allow new buyers of homes or businesses to assume a property’s existing flood insurance policy. The provision was one of many in the new law aimed at reducing the unintended price shock associated with Biggert-Waters.

This action continues FEMA’s implementation efforts of the latest flood legislation, which the Big “I” strongly supported. On March 21, President Obama signed the act into law, and the Big “I” has continued to work with FEMA on the agency’s implementation plans.

FEMA previously announced that effective May 1, 2014, the NFIP and its WYO company partners will begin to adjust rates for all new applications for pre-FIRM properties by using the rate tables effective Oct. 1, 2013. This change would apply to properties bought and sold since July 6, 2012, properties not insured on July 6, 2012, and properties that lost their subsidy since the enactment of Biggert-Waters due to a lapse in policy coverage.

Separately, Reps. Dennis Ross (R-Fla.) and Patrick Murphy (D-Fla.) recently introduced H.R. 4558, the “Flood Insurance Market Parity and Modernization Act of 2014.” The new bill aims to remove excessive restrictions placed on insurance companies by the federal government for the issuance of private flood insurance and would give the states more flexibility to license and regulate private flood insurance. This legislation could be considered by the House Financial Services Committee this summer.   

The Big "I" will continue to work with Congress and FEMA on both the implementation of the Homeowner Flood Insurance Affordability Act of 2013 as well as other legislation affecting the NFIP.

John Prible is Big “I” vice president of federal government affairs.