The U.S. Senate is expected to vote next week on the Homeowner Flood Insurance Affordability Act, S. 1846.  This legislation delays for four years substantial (flood insurance) premium increases that are required by the current Biggert-Waters Act. This four-year delay allows FEMA time to complete an affordability study.  Those who are not already familiar with Biggert-Waters will be soon enough, because it threatens just about everyone’s property value.

We are urged to contact our two senators, John Cornyn and Ted Cruz. Neither has yet to commit, so we need to encourage them to vote YES on the cloture motion to proceed to the Homeowner Flood Insurance Affordability Act (S. 1846). If it is not passed, then homeowners and business owners across America will see dramatic, unaffordable flood insurance premium increases. Contact information for all Senators can be found here.  Or, you may call one of your Senators’ offices and request the email address of the staff member who handles flood insurance.

History

In July 2012, the U.S. Congress passed the Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) which calls on the Federal Emergency Management Agency (FEMA), and other agencies, to make a number of changes to the way the National Flood Insurance Program (NFIP) is run. Some of these changes already have occurred, and others will be implemented in the coming months. Key provisions of the legislation will require the NFIP to raise rates to reflect true flood risk, make the program more financially stable, and change how Flood Insurance Rate Map (FIRM) updates impact policyholders. The changes will mean premium rate increases for some—but not all—policyholders over time. Homeowners and business owners are encouraged to learn their flood risk and talk to their insurance agent to determine if their policy will be affected by BW-12.

Major Changes to the National Flood Insurance Program (NFIP)

•  Higher insurance premiums for homes and businesses below the Base Flood Elevation (BFE).
• No discounts will be given to homeowners for properties below the BFE, even if they met the building code at the time of construction.
• Pre-FIRM (Flood Insurance Rate Map) and grandfathered rates will be phased-out.
• Subsidized insurance rates will be phased out for all properties except pre-FIRM primary residences that have not lost their qualification for the rate.