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Article: Bill Would Make Flood Insurance More Expensive on Vacation Homes.
- Article from:
- Mortgage Line
- Article date:
- September 8, 2006
- Author:
CopyrightCOPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- The House has passed a flood insurance reform bill by a 416-4 vote that phases out subsidized premiums on vacation/second homes and commercial properties - impacting an estimated 450,000 properties.
In phasing out the subsidies, the Federal Emergency Management Agency can increase premiums by 15% a year. However, FEMA can also increase overall premiums for actuarial reasons by another 15%. This means a vacation homeowner could get hit with a 30% increase.
"Premiums will increase, or may increase, up to a maximum of 30% per year," said Rep. Richard Baker, R-La., sponsor of the flood insurance reform bill (H.R. 4973.)
House ...