Our elected representatives made a decision to delay an even tougher decision. According to the Federal Emergency Management Agency, Congressional maneuvering will delay the implementation of higher premiums required by new and more accurate flood maps. The increased costs will affect hundreds of thousands of property owners in coastal areas and in flood plains. Presently, these owners pay lower grandfathered rates because their properties are in compliance with earlier flood codes. But those lower rates are set to expire thanks to a money-saving measure built into the Biggert-Waters Act of 2012. Once new rates are phased in under the two-year-old law, some owners will face substantial increases in premiums. It’s a potential lose-lose situation as owners who can’t afford higher flood insurance premiums may have to sell their properties at distressed prices.
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Photo Credit: Federal Emergency Management Agency