President Barack Obama has signed the “Biggert-Waters Flood Insurance Reform and Modernization Act of 2012” into law. The law extends the National Flood Insurance Program (NFIP) for five years and makes needed reforms to the program. The Senate and House passed the legislation as part of a conference report package along with the Surface Transportation Act of 2012 and an extension of the Federal Direct Stafford Student Loan program. The reforms include:
• phasing out subsidies for many properties,
• raising the cap on annual premium increases from 10% to 20%,
• allowing multifamily properties to purchase NFIP policies,
• imposing minimum deductibles for flood claims,
• requiring the NFIP administrator to develop a plan for repaying the debt incurred from Hurricane Katrina, and
• establishing a technical mapping advisory council to deal with map modernization issues.
The new law will require the Government Accountability Office to conduct a study on the prospect of adding business interruption and additional living expenses coverage to the NFIP and also will require the Federal Insurance Office to study and submit a report to Congress on natural disaster insurance issues and possible legislative solutions. Several members of Congress worked hard on the measure, including Sen. Richard Shelby and Rep. Spencer Bachus from Alabama and their work paid off for millions of homeowners and businesses across the U.S. who are threatened by flooding.
Source: Insurance Journal
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.