It looks as though the President of the United States is taking a stand against the rising flood insurance premium rates. With the passing of this bill, there will not be a limit to the flood insurance premium which will not allow any greater than 18 percent increases per year.
“We fought the good fight and we won and thousands of middle class families in Louisiana and throughout the nation are going to get immediate relief,” stated Senatore Mary Landrieu. “Most importantly, we reestablished in this arduous legislative process that affordability is important to the long-term stability of the flood insurance program.”
For the past two years, legislature has fought to limit these increases for those the 5.5 million policyholders who are in flood risk areas. Of course Travelers Rest real estate owners know this very well as the increase in the policy has brought double to ten times the amount that they were paying on their previous premiums. This priced out many middle class families making the program extremely unaffordable.
The new bill, The Homeowner Flood Insurance Affordability Act, will limit price increases to an approximate average of 15 percent per year from the 9 FEMA categories. With the bill’s passing, you will also see the grandfathering provision reinstated allowing for those that are now listed with a greater risk of flooding will not be hit with a substantial increase. You may also see a refund to your Travelers Rest real estate as well if you purchased after July 2012.
Senator David Vitter even stated, “This huge victory saves families in Louisiana and across the country from losing their homes.” With these changes, there should be almost instantaneous change in the real estate market allowing for an increase in those willing to buy and sell their Travelers Rest home. With this now off of the plate of millions of home owners around the county, expect to see a sharp change in the market as more owners will begin to have a positive light towards the flood insurance.
For even more information on how Travelers Rest will be effected by this new bill, please be sure to contact the Carolina Mountain Real Estate experts at www.CarolinaMountainRE.com. We would love to answer any questions you may have about this new legislature passing and how it will benefit your home buying or home selling options.