Flood Insurance Relief Bill soon to be signed

US president Barack Obama is set to sign a bipartisan bill that will alleviate homeowners living in flood-prone neighbourhoods from huge rises in their insurance bills.

The bill would also allow below-market insurance rates to be passed on to people buying homes in these areas with taxpayer-subsidised policies. This move has come under much criticism.

Another provision eagerly sought by the real estate industry would allow sellers of older homes built before original flood insurance risk maps were drafted to pass taxpayer-subsidised policies on to the people buying their homes instead of requiring purchasers to pay actuarially sound rates immediately, as required by the 2012 law.