Lawmakers work to fix FEMA flood-coverage issue [The Sun Herald, Biloxi, Miss.]

Feb. 22--JACKSON -- State lawmakers are working to change a law that could cause the state to be booted out of the National Flood Insurance Program and put thousands of homeowners, and their mortgages, at risk.

Mississippi has exempted hunting and fishing camps from meeting building codes, including flood-plain regulations. Last year, FEMA warned the state that unless this changes it would lose its certification for the National Flood Insurance Program, which provides government-backed flood insurance for homeowners. FEMA warned the state would also be ineligible for many federal disaster-relief programs unless the law was changed. The deadline is May 5.

On Tuesday, the House Insurance Committee passed House Bill 773, authored by Insurance Chairman Gary Chism, R-Columbus, which would remove the hunting- and-fishing-camp exemption from flood-plain regulations. Several other similar bills are pending in the House and Senate.

Reps. Jeffrey Guice, R-Ocean Springs, and Scott DeLano, R-Biloxi, members of the Insurance Committee, said the change is crucial, not just to the hurricane-prone Coast, but statewide and they believe the Legislature will correct the problem.

"Only two counties in the state have not adopted the flood-plain management program," Guice said. "You're talking about something that could put thousands of mortgages in this state in default."

DeLano said FEMA hasn't guaranteed HB 773 would solve the problem, but lawmakers have been in discussion with the agency and he believes the issue will be worked out.

Attorney General Jim Hood last year requested a waiver from FEMA for hunting and fishing camps, but his request was denied.

State Insurance Commissioner Mike Chaney met Tuesday with the Insurance Committee. He said failure to resolve the issue would have a "devastating" effect, not just because of the federal flood insurance program. It would cause drastic increases in state insurance wind pool rates.

"It has got to be done," Chaney said. "As of May 5, 2012, we will be decertified if we don't."

Chaney said he is pushing lawmakers to pass legislation to correct the problem, and has written a letter asking Hood to "use every legal means to ensure continued access to NFIP coverage for Mississippians, including litigation." Chaney said there are nearly 88,000 NFIP policies in Mississippi, insuring more than $18 billion worth of property.

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