What is the deal with Flood Insurance as it affects Tampa Bay?!
It appears that the National Flood Insurance Program will be under a moratorium as of December 8th. This means that as of December 8th no more policies will be able to be written through the program until it is reauthorized. This has happened in the past and has delayed closing as well as killed deals. There is almost no doubt that they will reauthorize the program, but so much comes down to how they will address the emergence of the private market. If they state within the legislation that the private market flood option will be accepted by Fannie Mae and Freddie Mac, which is what it looks like they’re going to do, then the State of Florida will continue to move in a great direction for the consumer. The private market is more than a viable option with regards to price and coverage, and is a great avenue for someone looking to purchase a home that doesn’t want to be held up because of the NFIP (National Flood Insurance Program.)
What should you do if you’re a homeowner? If you currently have a policy through the government’s program and it is your primary home, you should hold tight. The way the current legislation is worded switching to the private market after having a policy through the NFIP will remove any subsidized rate if you then go back to the NFIP – phew. That being said, the private market is a great option for those who have second homes or rental properties. This is because there is a substantial increase in the cost of insurance if the home is not your primary residence.
In summary, the NFIP is massively in debt and the previous legislation that governed the program had rates increasing in every category. There isn’t a new piece of legislation that has been accepted so it is unclear what will happen with the NFIP when it is reauthorized. Keep your fingers crossed and get involved in any way you can to make sure the private market will be accepted by the reauthorized program.
Guest post by Michael Puffer at Florida Strategic Insurance
Pinellas County Waterfront Homes Under $600,000
Update by Liane Jamason on 11/14/17:
Flood insurance bill moving forward in Congress
Lawmakers on Capitol Hill will hold a hearing Monday on a recently struck compromise bill to overhaul and reauthorize the National Flood Insurance Program (NFIP), a sign of progress toward breaking a months-long deadlock over the NFIP in the House.
House Majority Whip Steve Scalise, R-Jefferson, reached a deal on key provisions of the proposed reauthorization for the flood insurance program with House Financial Services Chairman Jeb Hensarling, R-Texas, at the beginning of the month.
Leave a Reply