Blame Congress. The HFIAA (Homeowner Flood Insurance Affordability Act) Surcharge started in 2015 as mandated by Congress. The reason - Congress is capping the allowable annual rate increase for high risk properties. So the HFIAA surcharge is designed to offset the possibly insufficient collected premium for these subsidized properties.
-$25 for Primary Residential Properties (e.g. you live in the home)
-$250 for all other (e.g. rentals, commercial property, vacation homes)
Additionally there is an increase in the Federal Reserve fund assessment, which was established to cover claim costs when the collected annual premium was not sufficient. Previously the rate was 0% or 5% now it is 10% to 15% (like above depending on the type of property).
If you would like more information and you are a client, give us a call or email. If you are not a client, Google it.
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