Homeowner Flood Insurance Affordability Act
On March 21, 2014, President Obama signed the Homeowner Flood Insurance Affordability Act of 2014 into law.
This law repeals and modifies certain provisions of the Biggert-Waters Flood Insurance Reform Act, which was enacted in 2012. FEMA looks forward to working with Congress, the private Write Your Own Insurance Companies and other stakeholders to implement these Congressionally-mandated reforms and to working toward our shared goals of helping families maintain affordable flood insurance, ensuring the financial stability of the NFIP and reducing the risks and consequences of flooding nationwide. FEMA will continue to identify and publish special flood hazards and flood risk zones as authorized and required by Congress.
Resources on this page reflect previous changes to the NFIP from the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) and the Consolidated Appropriations Act of 2014. Materials will be updated to reflect the Homeowner Flood Insurance Affordability Act of 2014.
More information on the new law and its impacts on the NFIP will be forthcoming.
IMPLEMENTATION OF SECTION 3 – REPEAL OF CERTAIN RATE INCREASES
As part of the implementation of the Homeowner Flood Insurance Affordability Act of 2014 and provide relief to qualifying policyholders who received rate increases under earlier legislative program changes, On April 15, 2015, FEMA issued a National Flood Insurance Program bulletin to its private sector, Write Your Own insurance company partners on how to adjust rates for certain Pre-Flood Insurance Rate Map properties as described by Section three (3) of the Act. This action begins to implement FEMA’s first priority to stop policy increases for certain subsidized policyholders as outlined in the Act.
Beginning May 1, 2014, for all new applications for flood insurance and renewal of flood insurance policies for properties covered by Section 3, FEMA will require its Direct Servicing Agent and Write Your Own companies to use the October 1, 2013 Pre-FIRM subsidized rates when more favorable for properties covered by Section 3.
Biggert-Waters Flood Insurance Reform Act
In July 2012, the U.S. Congress passed the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) which calls on the Federal Emergency Management Agency (FEMA) and other agencies, to make a number of changes to the way the National Flood Insurance Program (NFIP) is run. Some of these changes already have occurred and others will be implemented in the coming months. Key provisions of the legislation will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable and change how Flood Insurance Rate Map (FIRM) updates impact policyholders. The changes will mean premium rate increases for some—but not all—policyholders over time. Homeowners and business owners are encouraged to learn their flood risk and talk to their insurance agent to determine if their policy will be affected by BW-12.
OVERVIEW
Questions about the Biggert-Waters Flood Insurance Reform Act of 2012
PRE-FIRM SUBSIDY REMOVAL (STARTING IN 2013)
The NFIP’s Specific Rate Guidelines
An overview of the changes to the Specific Rate Guidelines, with examples
BUILDING AND REBUILDING INFORMATION FOR HOME AND BUSINESS OWNERS
Rebuilding in an AE zone
Scenario showing cost effectiveness of building above the BFE
Rebuilding in a VE zone
Scenario showing cost effectiveness of building above the BFE
Build Back Safer and Stronger: What You Need to Know (English and Spanish)
A tri-fold brochure explaining how rebuilding higher and mitigating flood risk can reduce flood insurance premiums and reduce the chance of future flood damage
Homeowner’s Guide to Elevation Certificates
Guidance for obtaining an Elevation Certificate, which is necessary for determining full-risk rates in high-risk zones
OTHER
Federal Regulators Propose New Rule Regarding Mandatory Purchase of Flood Insurance
