Flood Insurance Subsidies Begin Phase-out
A phase-out of federal subsidies for older homes receiving federal flood insurance has kicked in as outlined under the flood insurance reform and reauthorization law enacted last year. As a result, some owners of older properties could see their portion of flood insurance premiums rise. Under the phase-out, owners of second homes and vacation homes see a 25 percent increase in their premiums. That began on January 1. Starting in June, owners of business properties and properties that have experienced severe repetitive losses from flood damage will see a 25 percent increase in their share. Other incremental increases in the share of premiums owners are responsible for are forthcoming this year as well. Access a rate schedule and an NAR brochure on how to explain the reforms to customers. For more info contact Austin Perez, 202-383-1046.