Could Your Flood Insurance Rate Be About to Go Up?

Since Congress passed the Flood Insurance Reform Act of 2012, changes are being implemented to the National Flood Insurance Program (NFIP).

Those changes include possible rate changes that remove "artificially low rates" and discounts that were set nearly half a century ago, when the plan was implemented and grandfathered in some rates.

Owners of primary residences in special flood hazard areas (SFHA) may keep their subsidized rates until they sell the property; the policy lapses; the property suffers severe, repeated flood losses; or a new policy is purchased. 

Subsidized rates for non-primary or secondary residences are already being phased out, and others will be eliminated over time, beginning later this year.

Increases will be gradual - 20 to 25 percent, depending on the property - beginning with an annual rate increase until rates reflect "true risk" on non-primary or secondary residences, and businesses and properties with severe, repeated losses.

This rate change affects about 20 percent of policyholders.

City residents with NFIP should contact their insurance agent directly about this rate change. 

- By the City of Fairfax

TELL US - Are you affected by this? If so, how much is your rate going up? Tell us in the comments below.

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