Flood Insurance Reform Passes House
By Kelly Quimby, The Brunswick News, Ga. | |
McClatchy-Tribune Information Services |
The House voted 306-91 to suspend the rules and pass House Resolution 3370, the Homeowner Flood Insurance Affordability Bill. U.S. Rep.
The over-arching goal of the new bill is to reduce what for many became unaffordable premiums created by the Biggert-Waters Flood Insurance Reform Act of 2012.
Biggert-Waters was an attempt to reduce the
The bill raised federal flood insurance premiums to astronomical levels in flood-prone areas, making it unaffordable for owners of properties purchased after
Tensions had been high in Coastal Georgia since last week, when members of the
House Democrats had tried and failed to bring the
"(Isakson's) goal remains the same: to protect tens of thousands of Georgians and many more thousands across the country from these severe increases in their flood insurance rates," Gordon said. "He is eager to reach (an) agreement on a bill that can pass both chambers and be signed into law."
Rep.
The newest legislation isn't perfect, she said, but does provide relief for property owners facing exorbitant flood insurance rate increases under her original bill.
"From the moment we heard about the unintended consequences of (Biggert-Waters), Democratic lawmakers in the
"I believe this House measure strikes an important balance -- addressing affordability concerns, bringing accountability to (the
The House's Homeowner Flood Insurance Affordability Act caps annual rate increases at 18 percent, and provides homeowners the option to select a high deductible over a higher rate. HR 3370 also requires
"While we have to make sure this program is financially sustainable for the long term,
-- Reporter
Provisions of the Act
The negotiated Homeowner Flood Affordability Act, according to Rep.
-- Repeals certain rate increase "triggers," ensuring that no policyholder will experience dramatic rate increases from the sale of a home or a lapse in policy.
-- Restores "grandfathering," so those who built properties to code in the past do not have to worry about catastrophic rate increases as a result of remapping.
-- Lowers
-- Refunds excess premium charges to those who have paid significant rate increases.
-- Completes the affordability study and framework. The measure provides
-- Caps individual property rate increase at 18 percent.
-- Requires
-- Ensures policyholders receive clear information relating to their policy
-- Requires
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