Here we are again with more coming out about the seemingly incomprehensible new National Flood Insurance Rate Act.
The act, which was signed into law on Friday (March 21st, for those following along at home) included a grace period of 8 MONTHS for FEMA to develop guidance for insurance companies. According to Lisa Jones, a consultant hired by the National Association of Realtors to examine the new law, This grace period is followed by 6 month period that gives insurance companies time to revamp their software to handle the changes.
All boiled down, that means that you shouldn't expect to see immediate changes to the way the way your insurance agent details your flood insurance for some time. In fact, FEMA Administrator Craig Fugate said when testifying before the House subcommittee on Emergency Preparedness, Response and Communications, that buyers may need to work with both their insurance agent and FEMA directly to ensure they are given correct rates under the new law.
If you do happen to have increased rates now or are not able to procure the new rates when you purchase your home. You will be eligible for a refund of the difference in premium levels once the changes are put into effect.
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