The massive Omnibus Appropriations Bill includes a delay in flood insurance premium increases for residential properties constructed before a flood insurance map was effective. These “grandfathered” properties will see no rate increase before November.
Since the Biggert-Waters Flood Insurance Reform Act passed last year, the Federal Emergency Management Agency (FEMA) has been implementing rate increases for commercial properties, homes that are not a primary residence, and substantially improved or damaged property. While FEMA had no intention of raising rates this year on grandfathered properties, Congress enacted the provision to ensure that no increases would be imposed this year. The Senate is considering a separate bill that will roll back rate increases that began taking effect last year, and freeze the lower rates for as long as four years while FEMA conducts an affordability study. The Senate is expected to pass the bill in the coming days, but the prospect for similar legislation in the House is uncertain.