Relief Hopefully on the Horizon for Long Island Homeowners in Flood Zones
Homeowners who are situated in flood zones may finally get relief sometime later this week, when a bill comes up for Senate action. This is known as the Homeowner Flood Insurance Affordability Act and it is in response to the 2012 Biggert-Waters flood Insurance Law.
If you live and work on Long Island's south shore, as I do, you are desperate to hear some good news about flood insurance rates.
The practice of grandfathering current homeowners' flood insurance premiums for future buyers came to a halt after Superstorm Sandy. There have
been huge consequences for flood zone homeowners. Real estate values have dropped noticeably.
Much of the real estate inventory on Long Island's south shore has attracted little interest from buyers who were unsure what flood zones would mean in terms of annual insurance premiums.
Rumored annual increases of 25% over 4 years (for a total of 100%) were destined to make coastal living cost-prohibitive.
The affordability act has some opponents in the House but a moderate version of the bill is still expected, when voting time comes.
The Affordability Act is a temporary measure that would delay premium increases for about four years until more study has taken place.
News sources report the National Flood Insurance Program is heavily in debt and the Biggert-Waters Act was an attempt to improve its sustainability.