HR 3370 Homeowner Flood Insurance Affordability Act of 2014 – Annual Premium Target

This next section is quick. HR 3370 advises the Administrator of FEMA to minimize the number of policies that have an annual premium in excess of 1% of the redemption value of the insurance. Thus, for the $250,000 maximum structural coverage I mentioned in the previous post, the target is for annual premiums to not exceed $2,500 per year.

Obviously there will be exceptions to this rule. Thus the use of the word “minimize.” Certain properties, probably repetitive loss properties, will probably be subject to higher premiums.

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