Cassidy: Flood Insurance Refunds Begin Tomorrow, New Plan to be Available

Press Release

Today, Rep. Bill Cassidy (R-LA) announced that the National Flood Insurance Program (NFIP) is continuing to implement the Grimm-Cassidy Substitute Amendment to the Homeowner Flood Insurance Affordability Act of 2014.

NEW UPDATES:

Beginning Tomorrow, Some Policyholders Will Begin Receiving Refunds

Tomorrow, applicable policyholders who overpaid prior to the Grimm-Cassidy Amendment will begin receiving refunds. About 1 million policyholders will see refunds that average $100. All checks are anticipated to be written by the end of the calendar year. Read more on eligible refunds HERE.

New, Affordable Plan To Be Available

FEMA is also moving forward in offering a high-deductible plan option. This $10,000 deductible option could reduce premiums up to 40 percent. FEMA expects it to be available April 1, 2015.

Grandfathered Policyholders Could See Little To No Rate Increase

Also, policyholders with grandfathered rates located in low risk categories could see an increase of 1.5 or 2 percent, with inflation.

Dr. Cassidy offered the following statement:

"On October 1, up to 1 million policyholders will begin receiving refunds. FEMA is issuing new flood maps and making flood insurance more affordable by planning to offer a high-deductible option. Affordable flood insurance for Louisiana families is becoming a reality. This was one of the goals of the Grimm-Cassidy Amendment to the Homeowner Flood Insurance Affordability Act. There's still more work to be done and I look forward to continue working on this issue."

BACKGROUND

Recently, Dr. Cassidy announced that FEMA is issuing revised preliminary flood maps in Grant, Jefferson, Lafayette, Orleans and St. Bernard Parishes beginning now through November, 2014. Natchitoches Parish was issued a revised-preliminary map in August. Read FEMA's report HERE.

It was announced in July that insurance companies will begin to issue refunds for applicable policyholders beginning October 1, 2014. All checks are anticipated to be written by the end of the calendar year.

He also announced that 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, will revert back to premium schedules in effect Oct. 1, 2013.

The Grimm-Cassidy Substitute Amendment to the Homeowner Flood Insurance Affordability Act (H.R. 3370) 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.

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 stakeholder groups around this country.

Source