Last Thursday, the Senate approved S.1926, the “Homeowner Flood Insurance Affordability Act of 2014” by a vote of 67-32. This will delay dramatic increases in federal flood insurance premiums until 2017. During the next few years the Federal Emergency Management Agency (FEMA) will be tasked with the job of determining the impact of the increase on property owners and draft a plan to make the premiums affordable.
The Homeowner Flood Insurance Affordability Act was drafted in response to the Bigger-Waters Flood Insurance Reform Act of 2012, which was intended to allow premiums to increase to reflect the risk of living in high-flood areas. Unfortunately, the increases in premiums reached unaffordable levels for many homeowners and community associations.
After last year’s devastating floods, homeowners and community associations in Colorado would clearly benefit from a more stable insurance program and more affordable premiums. We will keep you posted on further developments on S. 1926.