Explainer: Putting Biggert-Waters Flood Insurance Reform Act in Perspective
This article references New Jersey, but will apply equally to Delaware
Law to increase insurance rates could spell trouble for residents of the Jersey Shore
What it is
The Biggert-Waters Flood Insurance Reform Act of 2012 makes a number of changes to the National Flood Insurance Program (NFIP),including increasing flood insurance premiums so the rates people pay will more accurately reflect their risks. Many discounts and subsidies policyholders received in the past -- including those for second homes -- are being eliminated or will be phased out over the next several years. The act also calls on FEMA to incorporate sea-level rise into its future flood maps.
There’s a common misperception
that all these new rules are going into effect as a result of Sandy, but
that’s not the case. Biggert-Waters was passed months before the
storm, and these changes were already due to take place. It's just a
coincidence that Sandy happened around the same time.
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