On April 15, 2014 FEMA reported implementing the first provisions of the Flood Insurance Affordability Act, which will provide immediate rate relief to homebuyers. In this bulletin, FEMA directs insurance companies to stop charging full-risk premium rates when older properties are sold after May 1st. Instead, buyers will be allowed to assume the seller’s current rate until FEMA issues new rate tables and refunds under this new law.The new law will also affect commercial property insurance for your business if you’re in any of the flood-risk states/municipalities. NAR will continue pressing FEMA to implement the rest of the rate relief provisions according to statutory deadlines. This new legislation providing flood insurance rate relief to homebuyers was signed into law by President Obama in March. It is reforming provisions of the “Biggert Waters” bill passed in July of 2013 that created unintended unpredictable rate increases for some flood insurance consumers that were not tied to a home’s actual risk of flooding. More detailed information on the new law as well as Biggert-Waters is available here: http://www.sacrealtor.org/blog/2014/03/13/flood-insurance-update-bill-headed-to-presidents-desk/.