The October 1, 2013 implementation of the Biggert-Waters Act 2012 will kick-off next week. The Parish President has been a proponent of a delay or significant revision to the law prior to implementation and administrative and congressional fixes may come to be in the future. The State of Mississippi has filed a lawsuit against the Federal government for relief. While the discussion continues, there is no delay expected prior to next week.
Parts of the law goes into effect Tuesday October 1st. Certain properties in the Special Flood Hazard Area built before 1974 will no longer pay a subsidized rate based on earlier designations. Policies will increase at renewal over the next year.
All policies will increase 16% this year as part of the standard increase (11%) and 5% for the new reserve fund to save for catastrophic events.
New purchases and lapsed policies for pre-FIRM structures (built to code prior to 1974) will be paying at full rates immediately. If a policy lapses, there is a 30-day grace period to continue the original policy.
Properties that are Severe Repetitive Losses or have claims equal to 100% of the value of the home and Secondary Residences will go up 25% of the current premium until it reaches the actuarial rate.