St. John the Baptist Parish – President Barack Obama has officially signed H.R. 3370, The Homeowner Flood Insurance Affordability Act, into law. The law provides relief to homeowners as a result of the 2012 Biggert-Waters Act. “We are extremely pleased that President Obama signed the Homeowner Flood Insurance Affordability Act into law so quickly,” said Parish President Robottom. “This is a huge victory for St. John the Baptist Parish, Louisiana and the nation. Our coalition will continue to work to ensure the law is properly implemented and our communities are protected."
The law includes the reinstatement of grandfathering and capping premiums at one percent of the real estate policy value as well as legislation to also remove the property sales trigger and caps annual rate increases at 15 percent. It also provides legislation that will refund policyholders who purchased homes and were subsequently charged higher rates.
The law ensures several other positive provisions, including increasing the home improvement threshold, reimbursing policyholders for successful map changes, creating a flood insurance advocate for homeowners, preserving the basement exception, addressing problems relating to escrow accounts for policy holders, and refunding policyholders who purchased pre-FIRM homes before FEMA could warn them of a premium increase into the tens of thousands of dollars. The legislation is paid for by small fees on policies which expire once home owners achieve full-risk rates.