Step Forward in Stalling Flood Insurance Rate Hikes

Thursday the US Senate passed a measure that would stall rate hikes on flood insurance issued by the National Flood Insurance Program.

Many Florida homeowners were seeing their flood insurance rates spike ten fold over the past year, while others were being told they now had to purchase flood insurance because of a redrawing of FEMA flood zone maps.

The rate increases have added a new fear for Florida homebuyers.  In a market that is just starting to recover,  uncertainty on flood insurance premiums have seized some small markets in the area and caused flood zoned homes to sit unsold.

The bill, which now moves to the House for approval, would stall rate hikes for 4 years so that FEMA can conduct an affordability survey to better asses how and when to raise rates to cover the $27 billion in debt that has accumulated since the program's induction in 1968.