WASHINGTON — The House on Tuesday night voted to undo major provisions of a 2012 law that has caused sharp flood insurance rate increases, signaling possible relief after months of rising tension among homeowners in Florida and other states.
The bill would eliminate a provision of the law that said government-subsidized rates disappear when a person sells a primary home; provide a refund for those who already got hit under that provision; and maintain protections due to sunset for “grandfathered” properties built to code after a community adopted its first Flood Insurance Rate Map.
The legislation still allows FEMA to impose premium increases on homes built before those maps. But the change will be more manageable, bill supporters argued, ranging between 5 and 15 percent on average with a hard cap of 18 percent per year until reaching actuarial risk.
Click here to read more.