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Friday, October 25, 2013

Massachusetts Bill Introduced to Adress Flood Insurance Rate Increases

Massachusetts Attorney General Martha Coakley and House Speaker Robert DeLeo introduced legislation entitled An Act Relative to Flood Insurance "in an effort to assist homeowners facing significant flood insurance increases due to FEMA’s updated and expanded flood zone maps."

 The proposed state bill would:
  • "prohibit creditors from requiring homeowners to purchase flood insurance in an amount that exceeds the outstanding balance of their mortgage";
  • require the flood insurance to include "coverage for contents [and] include a deductible of less than $5,000."
The bill also requires "banks to provide a notice to homeowners, before paying for federally-mandated flood insurance, explaining that insurance coverage tied to the outstanding mortgage amount will only protect the current mortgage interest, and may not be sufficient to pay for repairs or property loss after a flood."

Learn more about this bill.