Friday, December 6, 2013

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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