A recent spate of reforms to flood insurance laws in New York has resulted in the coalescence of the Homeowner Flood Insurance Affordability Act of 2014. Although this act is now a couple of years old, its impact is still being measured. Many insurance claim holders are still unsure of how the new legislation will affect them, whether in a positive or negative manner.
Timely Legislation Is Designed To Control Insurance Rate Increases
The Act has been largely aimed at controlling flood insurance rate increases. Rates have tended to increase at an unprecedented level in the past few years, causing many claim holders to protest loudly. The Act is therefore designed to mitigate the effects of some of those increases, although it has a wider purpose of getting the frequency of rate increases under control without necessarily prohibiting them from occurring in the future.
Perhaps the most important feature of this recent Act lies in the ground rules it sets regarding the imposition of new insurance rates following the completion of a real estate deal. In the past, many new homeowners and property developers were left completely in the dark following the completion of such a deal. This was precisely because, having completed their recent transaction, they were in serious suspense regarding where their insurance rates would go.
Making Use of the Grandfathering System in a Strategic Fashion
What this new Act guarantees for new home and real estate owners is that their purchases will now be grandfathered under the policy premium amount held by the previous owner. This means that a fair degree of certainty and security can now be had when acquiring new real estate, especially with regard to those property deals that will involve the mandatory purchase of flood insurance.
As a result of the 2014 Act, the real estate market in New York, especially with regard to upstate areas, has received a timely and much welcome shot in the arm. The Act has removed much of the agonizing speculation concerning the propensity of flood insurance rates to rise at seemingly arbitrary levels after a home purchase. While the Act hasn’t put paid to all of the serious issues that were affecting the market, it has given new property owners a fair degree of comfort and security.
Will The Consequences Of The 2014 Act Lead To A Better Home Market?
While the immediate consequences of the Act are still being sorted out, it is undeniably true that the real estate market has improved in several critical areas of the state. It is hoped by many new home owners and property developers that the Act will lead to further adjustments in flood insurance rates. The ultimate effect of the Act on any future legislation remains to be determined.
How to Deal With New York Flood Insurance Laws In a Timely Fashion
It’s important to have an ally in your corner that can help you deal with the latest developments in New York property and flood insurance laws in a timely fashion. Insurance experts, such as Tully Rinckey PLLC, are here to help you navigate the changes and keep abreast of the latest news. Firms like theirs help clients navigate these tricky areas. Click here to know more about the firm.