2014 Flood Insurance Changes Simplified

Sinking HouseThe Grimm/Waters Homeowner Flood Insurance Affordability Act of 2014 was signed by President Obama on March 21st. 2014.  This law repeals and modifies certain provisions of the Biggert-Waters Flood Insurance Act of 2012.  Here are the important changes:

  • The sale of a property will not trigger full actuarial rates.
  • The new law requires gradual rate increases now receiving artificially low (or subsidized) rates instead of immediate increases to full-risk rates.
  • Annual Premium increases will be limited (for Pre-Firm residences) to 5%-18% until premiums reach their full risk rates.
  • New surcharges apply for all flood policies of $25 per primary home and $250 per policy for non-primary homes.
  • Maintains 25% premium increase for non-primary, business properties and severe repetitive loss properties until full risk rates are reached.
  • Coastal Insurance will continue to stay informed of the changes and will advise when implementation nears.


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