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FEMA Repeals NFIP Prohibition on Assuming a Prior Flood Policy

The Federal Emergency Management Agency has repealed a National Flood Insurance Program provision that prevented those buying homes and businesses from assuming a property’s prior flood insurance policy...
May 14, 2014

The Federal Emergency Management Agency (FEMA) has repealed a National Flood Insurance Program (NFIP) provision that prevented those buying homes and businesses from assuming a property’s prior flood insurance policy. The repeal was included in the Homeowner Flood Insurance Availability Act passed by Congress and signed by President Obama in March. The provision preventing buyers from assuming earlier policies had been one of the provisions in the Biggert-Waters Flood Insurance Act of 2012 that local and state officials feared would reduce the value of homes in flood zones and wipe out local real estate markets.

Sen. Mary Landrieu (D-La.) urged FEMA to continue implementing the NFIP changes. “While I am encouraged by today’s announcement,” said Landrieu, “FEMA must continue to implement the Homeowner Flood Insurance Affordability Act quickly and bring essential relief to the 400,000 families in Louisiana and millions more across the country who rely on accessible and affordable flood insurance.”

*An upcoming special edition of PIA National Newsline will detail additional recent NFIP changes.

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