Some NFIP premiums set to rise Oct. 1
Sept. 30, 2013 – Despite concerns raised by NAFCU and lawmakers representing regions affected by Hurricane Katrina and Superstorm Sandy, some premiums for the National Flood Insurance Program are still set to rise on Oct. 1 under the Biggert-Waters Flood Insurance Act passed last year.
According to the Federal Emergency Management Agency, the premium increases will primarily affect those whose policies are currently subsidized – about 20 percent of policy holders – and will have the most effect on properties within a “special flood hazard area.” FEMA says a 25 percent annual premium increase will immediately affect 5 percent of subsidized policies.
NAFCU addressed the Senate Banking Subcommittee on Economic Policy in response to its hearing on the Biggert-Waters Act’s implementation; Vice President of Legislative Affairs Brad Thaler recommended delaying the scheduled increase until a required study on affordability impact is completed. FEMA Administrator William Fugate told the subcommittee that changes to the rules written to implement the statute need to come from Congress.
Thaler urges delay in NFIP premium hikes