Relief for Flood Insurance Policyholders

Homeowners across the country are facing flood insurance rate increases as a result of reforms in the Biggert-Waters Act, made to address the solvency and affordability of the National Flood Insurance Program, which protects homeowners from flood losses. Because of FEMA’s implementation of Biggert-Waters, premiums were expected to increase up to tens of thousands of dollars. Thankfully, through hard work and bipartisanship, Congress found a long-term solution to ensure flood insurance remains affordable for both current and future homeowners, and passed H.R. 3370, the Homeowner Flood Insurance Affordability Act of 2013. This legislation subsequently passed the Senate, and was signed into law on March 21, 2014.

Prior to the introduction of H.R. 3370, I introduced the Homeowners Flood Insurance Relief Act, to substantively address the flood insurance rate increase. I heard from my constituents, and was involved in this process from the beginning. I was proud to be part of the core group of bipartisan legislators that worked with Majority Leader Cantor to get H.R. 3370 passed in the House of Representatives.

H.R. 3370 includes common-sense reforms that not only continue the intent of the NFIP – to protect homeowners from devastating floods – but also ensures the program is able to cover its costs. The Homeowner Flood Insurance Affordability Act of 2013 is the result of bipartisanship.

It is important to stress that the reforms made to the NFIP were not intended to cause the dramatic increases that homeowners are currently experiencing. However, some Floridians have been quoted annual premiums of $10,000 or more. Rate increases to such an extreme are an untenable financial burden during these difficult economic times that will negatively impact the already fragile housing market.

The Homeowner Flood Insurance Affordability Act of 2013 permanently addresses the problem of unreasonable rate increases and the long term fiscal viability of the NFIP. H.R. 3370 is a fantastic first step in addressing the immediate needs of so many Americans, but it is not the end of the process.

FEMA must be held accountable. To that end, I introduced H.R. 4352, the Flood Insurance Integrity Act. This legislation will require a review of the NFIP, and will provide transparency and shed much needed light on how flood rate maps are updated. The NFIP must be administered with integrity. H.R. 4352 is a good government bill. My constituents who need flood insurance should be able to know how those costs are calculated, and should be able to trust the integrity of those calculations. The Flood Insurance Integrity Act guarantees oversight and transparency – the American people deserve nothing less.