Kiwanis learns about flood insurance

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Gregg Porter, a Territory Manager for Selective Insurance spoke about flood insurance to the Natchitoches Kiwanis Club last week.

The two pieces of legislation he discussed were BW-12 and HFIAA. The Biggest-Waters Flood Insurance Reform Act of 2012 (BW-12) was enacted July 6, 2012 to reauthorize the National Flood Insurance Program (NFIP) through Sept. 30, 2017. President Obama signed the Homeowner Flood Insurance Availability Act (HFIAA) into law on March 21, 2014. It repealed and modified certain provisions of BW-12, made additional program changes and left some parts of BW-12 intact.

HFIAA prevents FEMA from raising average rates above 15 percent for a class of properties and above 18 percent on individual policies per year. It rescinds provisions in BW-12 requiring policyholders to pay the full-risk rate for Pre-FIRM properties at the time of purchase. It rescinds provisions in BW-12 requiring Pre-FIRM property owners to pay the full-risk rate if they voluntarily purchase a new policy. It rescinds provisions in BW-12 terminating grandfathering and lastly, it requires FEMA to refund policyholders for “overpaid” premiums.