As an update to our original blog post concerning the flood insurance changes due to the Biggert-Waters Act, we are happy to report that the Senate has passed the house bill 3370 which amends the latter act. This not only affected Topsail Island but affected the nation, even inland areas!

The senate choose to accept the house bill with a 72 to 22 vote on Thursday March 13, 2014. President Obama is expected to sign the bill into law soon.


So what does this mean for the law of the land when it comes to Flood Insurance and the NFIP?

  1. The original law had a premium increase trigger on the sale of the property. The new bill repeals this trigger on primary homes, second homes and businesses by allowing the new owner to assume the policy at the old rate (policy follows property not owner). It also allows for refunds to those who paid the increased premiums after the original law was passed.

  2. It also repeals Sec 207 by restoring grandfathering of properties in flood zones and restores a rate phase on new flood maps.

  3. The bill does have some rate increases to help the NFIP become sustainable though.  For homes built before 1975 (generally Pre-Firm)there will not be a 5% floor and 18% ceiling on increases (reduced from 25%). If built after 1975 (generally Post-Firm), an 18% ceiling will be in effect reduced from a 20% average.

  4. A $25 offset will be charged on all NFIP primary homes and $250 on businesses and second homes. 


Although rates will not be as they were before the summer of 2012 this a welcomed changed backed by the National Association of Realtors.

As we are not insurance agents, please speak with your insurance agent, we are only passing along what we understand.


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Chris Rackley

Chris Rackley 910.328.5211- Lewis Realty Associates, Inc.- President/Broker in Charge