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6/28/2013 - What homeowners need to know about flood insurance

The NFIP will remain intact for at least five more years.

For at least five more years, homeowners can rest assured they'll have the flood insurance needed in the event they incur high water levels.  This is after Congress passed legislation last year that will keep the National Flood Insurance Program in place.  But, with this extension, also come a number of changes that homeowners ought to know about.

With President Barack Obama's signature, Congress signed into law right around this time last summer the Biggert-Waters Flood Insurance Reform Act of 2012. In its essence, the bill provides the full faith and credit of the U.S. government's capital so that homeowners can recover after loss. With this act though, certain things that were permissible at one time will be no longer. For example, the NFIP had provided a handful of exceptions to the 30-day waiting period before coverage kicks in after purchasing a policy. However, with the act's implementation, these special cases will no longer be deemed permissible.

Another alteration to the NFIP resulting from the bill is the phasing out of subsidized rates. Moving forward, business properties, residences that don't serve as homeowners' primary dwelling place and properties that have been adversely affected by flood on multiple occasions will not be able to qualify for reduced rates.

With all these changes, it's important to stay abreast of the latest updates, many of which can be found at or  In addition, Selective will help provide home and business owners the information needed to help keep prepare them for one of the most common natural disasters experienced.

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