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Changes for gov’t flood insurance program announced for 2020

Posted by Mehran Aram on Wed, Mar 27, 2019 @ 08:03 AM

New rates for single-family homeowners who have flood insurance with the National Flood Insurance Program will take effect next year, under a new plan announced by the Trump Administration this week. The new system will now assess properties on an individual basis rather than using flood zone maps from the Federal Emergency Management Agency.

The new rates will be announced on April 1, 2020 and go into effect in October of that year. There are currently 3.5 million homes on public flood insurance that would see their rates change.

The government program allows home and business owners to buy federally backed flood insurance if private insurance carriers are too costly or unavailable in their area. The changes come as a series of natural disasters over the past several years have put the program in a financial bind.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

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Topics: single family homes, Mortgage rates, Homeowner, National Flood Insurance Program, Flood Insurance, Federal Emergency Management Agency