Politics & Government

Refunds for Repealed Flood Insurance Hikes to be Sent Out Oct. 1

Refunds will be provided in a single payment to those who overpaid

Policyholders who paid higher premiums in the National Flood Insurance Program that have since been reduced will receive refunds for their overpayments beginning in October.

When the Homeowner Flood Insurance Affordability Act of 2014 was signed by President Barack Obama in March after months of political wrangling in Congress, FEMA responded by re-adopting its old rate tables and restoring some subsidies to policyholders. But some of those policyholders already sent in their payments based on the newer rate tables that had been scrapped.

The New Orleans Times-Picayune reported recently that U.S. Rep. Bill Cassidy (R-La.) said FEMA officials informed him that refunds for the overpayments would start to be released nationally Oct. 1.

"As so many families are struggling in today's economy, ensuring that families receive these refunds as quickly as possible must be a priority," Cassidy said.

According to the Times-Picayune report, FEMA officials have not disclosed how much the average refund will be or how much the agency will pay out in total. The refunds will be made to customers in a single payment from the companies that write policies under the federal program.


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