Homeowner Flood Insurance Affordability Act
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Federal Action Alert: Homeowner Flood Insurance Affordability Act https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?age... What's happening with the National Flood Insurance Program? During the first weeks of January the United States Senate is expected to take up the Homeowner Flood Insurance Affordability Act (S.1846, formerly S.1610).This bill is an important first step for many Florida property owners facing unaffordable and unrealistic increases in flood insurance premiums as a result of the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12). BW-12 is designed to eliminate government flood insurance subsidies and stabilize the National Flood Insurance Program (NFIP) by raising rates by 20-25 percent annually to reflect true flood risk. Why is flood insurance reform important to Florida's counties? With more than 2 million policyholders, Florida makes up 37 percent of those who participate in the NFIP. Florida's policyholders have paid in more than $16 billion* into the program since 1978, with claims totaling only $3.7 billion during the same timeframe. Thirteen percent of policies owned by Floridians are subsidized. The NFIP currently faces a $24 billion shortfall, which Congress sought to address by enacting BW-12. As a consequence of BW-12, Florida's property owners are experiencing - or will be subject to - dramatic and unaffordable increases in insurance premiums. Close to 270,000 policyholders in Florida's communities are subject to the impacts of premium changes already in effect. For example, a property owner in Monroe County received a $49,000 bill for insuring a $300,000 home for just one year against floods. As a result, recovering real 1 of 4 1/6/2014 3:05 PM Federal Action Alert: Homeowner Flood Insurance Affordability Act https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?age... estate markets are now stalling as portions of BW-12 impact potential home buyers and sellers, and commercial properties. What does S.1846 do for Floridians affected by BW-12? S.1846, and its House companion bill H.R.3370, would: Provide a four-year delay in premium increases for "grandfathered" properties, as defined in the bill. FEMA has indicated that more than 14,000 policies are definitely grandfathered in Florida; another 158,000 policies are "mostly grandfathered" and 1.2 million policies are "unknown" but "could be" grandfathered; Eliminate the provision that requires any "subsidized policy" move to the full risk rate when the property is sold; Eliminate a 50 percent cap on state and local contributions to levee construction and pre-construction; Establish a Flood Insurance Rate Map Advocate within FEMA. S.1846 currently has 28 cosponsors, including Senator Bill Nelson. H.R.3370 has 169 cosponsors, including Florida Representatives Corrine Brown, Vern Buchanan, Kathy Castor, Ted Deutch, Mario Diaz-Balart, Lois Frankel, Joe Garcia, Patrick Murphy, Rich Nugent, Ileana Ros-Lehtinen, Debbie Wasserman-Schultz, Frederica Wilson, Gus Bilirakis, Alcee Hastings, Tom Rooney, Jeff Miller, Steve Southerland, and Alan Grayson. Florida's Congressional Delegation deserves our thanks for their work on different reform vehicles and policy concepts to address the unintended consequences of BW-12. For example, H.R. 3218, introduced by 12 members of the Florida Delegation, would delay all rate increases until FEMA completes an affordability study. What else needs to happen? Delay in the implementation of BW-12 is not necessarily a cure-all. Most delay efforts circulating in Congress create winners and losers by targeting certain, but not all, properties for relief and continue to leave many policyholders in Florida vulnerable to immediate premium 2 of 4 1/6/2014 3:05 PM Federal Action Alert: Homeowner Flood Insurance Affordability Act https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?age... increases. In addition, Florida's real estate market may be affected by additional uncertainty created for buyers and sellers. Along with a more deliberative approach to changes in insurance premiums, Congress should also be encouraged to adopt flood mitigation and affordability solutions, such as: Reduce Rate Increases: create a tempered glide path for annual premium rate increases;· Flood Mitigation Programs: streamline grant administration, increase federal funding to harden communities against floods, and provide tax credits for homeowners investing in flood mitigation;· Improve Consumer Protection: create an independent Flood Insurance Consumer Advocate within FEMA along with an appeals process. How can you help? Please call your member of Congress and encourage them to: Support S.1846 (formerly S.1610) and H.R.3370 as an important step toward helping Florida property owners manage changes to the NFIP. Support affordability and mitigation policies and programs that can help achieve NFIP solvency without unduly burdening affected property owners. Send testimonials to your member of Congress and FAC on how dramatic increases in flood insurance premiums are affecting your community. For more information, call the Florida Association of Counties' Legislative Affairs staff: Deena Reppen and Eric Poole at 850.922.4300. *Source: Wharton Center for Risk Management Forward this email 3 of 4 1/6/2014 3:05 PM Federal Action Alert: Homeowner Flood Insurance Affordability Act https://ui.constantcontact.com/visualeditor/visual_editor_preview.jsp?age... This email was sent to [email protected] by [email protected] | Instant removal with SafeUnsubscribe™ | Privacy Policy. Florida Association of Counties | c/o Florida Association of Counties | 100 South Monroe Street | Tallahassee | FL | 32301 4 of 4 1/6/2014 3:05 PM.