U.S. Senate to Take Up Flood Insurance Rate Increase WASHINGTON – July 5, 2013 – Five Louisiana members of the U.S. House have joined more than 20 other Republican and Democratic representatives in sending a letter to Federal Emergency Management Agency (FEMA) Administrator Craig Fugate. The letter urges administrative fixes to prevent skyrocketing rates under the National Flood Insurance Program (NFIP). “A small percentage of homeowners are learning that they may be subjected to flood insurance rates that are ten, a hundred, and in some cases, more than a thousand times higher than their current subsidized rates,” the letter states. “These rates, which are upwards of $28,000 per year, are unaffordable and could have devastating impacts on these homeowners and their communities if they are implemented.” FEMA, on the other hand, is in the midst of finalizing its flood maps, though more parts of Louisiana’s coast could be considered high-risk velocity zones where insurance rates would increase more. An amendment to delay the phase-out of grandfathered rates for NFIP policyholders by one year moves to the U.S. Senate in July. Senate Appropriations Homeland Security Subcommittee Chair Mary Landrieu (D-La.) inserted the amendment into an appropriations bill slated for markup this month. Landrieu warns, however, that a legislative fix is needed to make NFIP financially sustainable. Several other bills have been filed to address NFIP rate hikes, including Landrieu’s Strengthen, Modernize and Reform The National Flood Insurance Program Act (SMART NFIP Act) that would indefinitely delay the hikes until six months after Congress receives an affordability study by FEMA and protects currently grandfathered properties. The Responsible Implementation of Flood Insurance Reform Act, filed by Sens. David Vitter (R-La.) and Thad Cochran (R-Miss.), would delay the period of phasing in rates, give flexibility for state and local governments to assist with subsidizing flood insurance, and reform FEMA’s flood-mapping procedures. In the U.S. House, members have sponsored the Flood Insurance Implementation Reform Act to delay rate hikes from going into effect for five years after properties are sold, and stall for three years rate hikes for properties that have their grandfathered statuses phased out. Source: Advocate (07/03/13) Blum, Jordan © Copyright 2013 INFORMATION, INC. Bethesda, MD (301) 215-4688
Posted on: Sun, 07 Jul 2013 14:38:13 +0000
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