Last month the US House of Representatives passed legislation aimed at reforming some of the changes mandated by the Biggert-Waters Flood Insurance Reform Act of 2012 (BW12). This new legislation is known as HR 3370, the Grimm-Waters bill, and while it has similar intent to the bill that the US Senate passed on January 30th, there are some key differences. The proposed Grimm-Waters bill:
- Prevents FEMA from raising average rates above 15% for a class of properties and above 18% on individual policies per year.
- Rescinds provisions in BW12 requiring individuals to pay the full-risk rate for Pre-FIRM properties at the time of purchase.
- Rescinds provisions in BW12 requiring Pre-FIRM property owners to pay the full-risk rate if they voluntarily purchase a new policy.
- Rescinds provisions in BW12 terminating grandfathering.
- Requires FEMA to refund policyholders for 'overpaid' premiums.
For a full summary of the proposed bill, please click here.
Please note, the Grimm-Waters bill must still be reviewed and voted on by the US Senate and then ultimately needs to be signed by the President prior to becoming law.
If you have any questions or you would like more information about Indiana Flood Insurance, contact TCU Insurance at 800-772-8043.