Owners who overpaid flood ins. to get refund soon

10/02/2014

Owners who overpaid flood ins. to get refund soon

WASHINGTON – Oct. 1, 2014 – The cost of federal flood insurance rose dramatically in some areas of Florida and the nation, but a law passed earlier this year, the Grimm-Cassidy Substitute Amendment to the Homeowner Flood Insurance Affordability Act of 2014, offers short-term relief.

Some homeowners paid the higher flood insurance rate before the bill passed, and those owners are slated to receive a refund for the overpayment that has taken time to calculate. However, Rep. Bill Cassidy (R-LA) announced that the refund checks will start going out today, and all checks should be in homeowners' hands by the end of the year.

Under Grimm-Cassidy, as of May 1, people who purchased new homes after Biggert-Waters became law – or who didn't have insurance before that date, or whose insurance lapsed – reverted back to premium schedules in effect Oct. 1, 2013. Most homeowners who overpaid for flood insurance did so during the seven-month retroactive period.

Grimm-Cassidy reinstates grandfathered rates, repeals the home sale/new policy rate increase trigger, provides refunds for people who bought pre-FIRM subsidized homes without being informed of rate increases and caps flood insurance rate increases, among other things.

Cassidy says the average refund will be about $100, but that varies significantly depending on the home.

Signed into law on March 21, 2014, the Grimm-Cassidy Amendment was supported by a broad bi-partisan coalition of Members of Congress, Realtors, homebuilders, credit unions, bankers and over 200 stakeholders.

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