Gillibrand, Menendez, Colleagues Introduce Comprehensive Flood Insurance Reform Bill to Extend NFIP
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- National Flood Insurance Program Is Set To Expire at the End of September Unless Congress Acts
- Legislation Would Reform Outdated National Flood Insurance Program to Make It More Sustainable, Affordable, and Efficient
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Today,
"Our National Flood Insurance Program is broken, and New Yorkers who live and work in coastal communities are demanding that
"We've witnessed the NFIP fail our constituents in their greatest hour of need and, after countless reauthorizations that simply kick a broken can down the road, we want real reform," said
Gillibrand is an original cosponsor of the National Flood Insurance Program Reauthorization and Reform (NFIP Re) Act of 2019. This legislation is sponsored by
Along with extending the NFIP for five years, this new legislation would make the following reforms to help address systemic problems within the NFIP:
- Cap Annual Premium Increases at 9 Percent: Currently, premiums can more than double every 4 years or less and
- Provide Vouchers for Millions of Low- and Middle-Income Homeowners and Renters:Vouchers would be provided for homeowners and renters if their flood insurance premium causes their housing costs to exceed 30 percent of the Adjusted Gross Income.
- Refocus on Flood Mitigation Efforts: TheNFIP Re Act of 2019 would freeze interest payments on the NFIP debt while reinvesting savings towards mitigation efforts to restore the program to solvency and reduce future borrowing.
- Make Strong Investments in Flood Mitigation: The bill would provide robust funding levels for cost-effective investments in mitigation, which have a large return on investment and are the most effective way to reduce flood risk.
- Better Reflect Rebuilding and Mitigation Costs: In order to better reflect the costs of rebuilding and of implementing flood mitigation projects, this bill would increase the maximum limit for ICC (Increased Cost of Compliance) coverage and expand ICC coverage eligibility to encourage more proactive mitigation before natural disasters.
- Authorize Funding for More Accurate Mapping of
- Place Limits on Profits for Private Insurance Companies: Write Your Own (WYO) compensation policies would be capped at the rate that
- Create Oversight of Write Your Own (WYO) Companies: The bill would create new oversight measures for insurance companies and vendors and provide
- Implement New Claims and Appeals Process Based on Lessons from Superstorm Sandy: The bill would fundamentally reform the claims process based on lessons learned in Superstorm Sandy and other disasters to level the playing field for policyholders during appeal or litigation, ban aggressive legal tactics preventing homeowners from filing legitimate claims, hold
- Provide Increased Training: The bill would provide for increased training and certification of agents and adjusters to reduce mistakes and improve the customer experience.
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