3.0 hours Floods and other Natural Hazards – Course Syllabus

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Course Syllabus:

3.0 Elective Hours

On March 21, 2014, President Obama signed the Homeowner Flood Insurance Affordability Act of 2014 into law. Many provisions of the Biggert-Waters Flood Insurance Reform Act remain and are still being implemented.

The new law lowers the recent rate increases on some policies, prevents some future rate increases, and implements a surcharge on all policyholders. The Act also repeals certain rate increases that have already gone into effect and provides for refunds to those policyholders. The new law requires gradual rate increases to properties now receiving artificially low or subsidized rates instead of immediate increases to full-risk rates required in certain cases under Biggert-Waters.

FEMA is required to increase premiums for most subsidized properties by no less than five percent annually until the class premium reaches its full-risk rate. Close to 80 percent of NFIP policyholders paid a full-risk rate prior to either Biggert-Waters or the Homeowner Flood Insurance Affordability Act, and are minimally impacted by either law. With limited exceptions, flood insurance premiums cannot increase more than 18 percent annually.

Upon course completion, the real estate professional will be able to describe how the Homeowner Flood Insurance Affordability Act of 2014 affects homeowners' flood insurance rates.

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