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House Approves Bill To Ease Flood Insurance Rates

2014-03-05 13:39:39

A bill that passed the House on Tuesday would limit premiums increases through the National Flood Insurance Program (NFIP) to no more than 18% per property annually. The bill is known as the Homeowner Flood Insurance Affordability Act.

The measure would allow sellers to pass along their subsidized, below-market insurance rates to new buyers and lower the cap on how much flood insurance premiums can rise each year.

The bill would change a 2012 law aimed at removing homeowners off subsidized flood insurance rates. The federal flood insurance program is now some $24 billion in debt. The 2012 law required extensive updating of the flood maps used to set premiums.

The bill now goes before the Senate for approval.

Read more in the USA Today.