|Targeted News Service|
In a 72-22 vote, the
In 2012, the Biggert-Waters Flood Insurance Reform Act was enacted as part of the highway and transit reauthorization bill in order to prevent the NFIP from lapsing and leaving thousands of property owners without access to flood insurance protection. The law sought to phase out or eliminate federal subsidies for certain flood-prone properties in order to address the program's growing debt. But since taking effect in July of 2012,
Under the bill, owners of "pre-FIRM" primary residences will be able to keep their typically lower "pre-FIRM" rates. Anyone who purchases the property as a primary residence will get the same rate. Property owners who purchased a "pre-FIRM" primary residence while the Biggert-Waters Act was in effect and were charged a higher actuarial rate will have their rate adjusted and will be entitled to a refund. The bill also allows
"This legislation is good news for homeowners and provides much-needed relief for those who were facing staggering increases in their flood insurance premiums," said Reed. "The National Flood Insurance Program is vital to protecting
While this rate relief in this bill is important, it is also important for homeowners to know and understand their flood risks so that they can take steps to guard against flood damage and reduce their premiums. In just two events since 2010,
Included in the legislation is a key provision authored by Senator Reed requiring
"Community-based flood insurance is a policy matter well worth studying," added Reed. "If local governments were able to spread the cost of premiums equitably among property owners and play a greater role in mitigating the risk of flooding for the entire community, that could mean both peace of mind and a higher degree of insurance premium affordability for entire communities of policy holders."