On March 13, 2014, the United States Senate approved the Homeowner Flood Insurance Affordability Act, as previously approved and amended by the House. President Obama signed the bill into law shortly thereafter.

 

The new bill repeals the authority of the Federal Emergency Management Agency (FEMA) to increase premium rates at time of sale or new flood map, and refunds the excessive premiums to those who bought a property before FEMA warned them of the rate increase. The bill limits premium increases to 18% annually on newer properties and 25% for some older ones. Additionally, the bill adds a small assessment on policies until everyone is paying full cost for flood insurance.