Legislation Would Reform the National Flood Insurance Program to Create More Affordable Flood Insurance Options for New York Families And Reform The Broken Claims
"Many people on
"We thank
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"I wholeheartedly endorse
"This is exactly the sort of support we need from our strong federal partners like
"We wholeheartedly agree with
"Superstorm Sandy opened our eyes not just to the obstacles our
This legislation would prevent short-term extensions and program lapses that create uncertainty for homeowners and the insurance and housing markets.
This legislation also reforms the NFIP by doing the following:
Enhancing Flood Insurance Affordability and Accessibility
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* Strengthens the Affordability Standard Disclosure. To ensure continued purchase of flood insurance policies in higher risk areas, federal administrators of the NFIP must identify policyholders with premiums in excess of the one percent of coverage limitation at the county/parish and state levels.
* Modernizes Increased Cost of Compliance (ICC) Coverage. Currently, ICC claims payments must be used to fund up to
* Provides Premium Credits to Offset the Cost of Obtaining an Elevation Certificate. Offers policyholders without an elevation certificate, a one-time rate credit of up to
* Facilitates Mitigation Credits that Reduce Premium Rates.
* Provides Affordability Vouchers to Offset the Cost of
* Modernizes coverage limits to align with actual replacement costs of residential and non-residential structures. Increases coverage limits from
* Creates an Agreed Value Insurance Pilot option for insureds in addition to the traditional stochastic model used to quantify flood loss in monetary terms.
Enhancing National Flood Insurance Program Solvency and Sustainability
* Clarifies FEMA's authority to cede NFIP risk in the capital markets through
* Provides Access to NFIP Claims Data. The NFIP maintains decades of claims data for millions of structures in lower to higher flood risk zones.
* Preserves Funding of NFIP Flood Mapping and Mitigation Activities. In an effort to sustain funding for flood mapping, mitigation and flood management activities; the NFIP federal policy fee will carry over to private flood insurance policies where such fees finance a public activity that holistically benefits the flood insurance market.
Providing Private Market Access, Accountability and Competition
* Preserves "Grandfathering" through Continuous Coverage. Allows NFIP policyholders to purchase a private flood insurance policy and switch back to NFIP coverage without losing continuous coverage or grandfathering status.
* Facilitates Private Market Participation by Write Your Own Companies. Gradually phases-in private coverage by initially expanding eligibility, over a two year period, to certain risk classifications (i.e. business properties, second homes, and severe repetitive loss properties). The Biggert-Waters Act (P.L. 112-141) has set an aggressive rate adjustment trajectory for these risk categories where full actuarial rates will be realized in a compressed timeline. In addition, the Homeowner Flood Insurance Affordability Act (P.L. 113-89) assessed a
* Creates a Pilot Risk-Sharing Program with Write Your Own Companies. Instructs the FEMA Administrator to engage in NFIP risk-sharing pilot programs where WYO companies or other qualified insurers assume a first-loss position of claims at or below
Modernizing Flood Mapping and Flood Risk Accuracy
* Reauthorizes the National Flood Mapping Program. With nearly 3 million miles of unidentified flood hazard areas; along with the need to update and accurately assess risk of existing flood zones; the National Flood Mapping Program shall be reauthorized at a funding level of
* Provides Mapping Standards and Guidelines for Nongovernmental Entities. Allows localities to elect to develop their own alternatives to NFIP flood maps.
* Encourages the Use of High-Resolution Mapping Technology. Instructs
* Improves the Flood Mapping of Levee-Protected Areas.
Enhancing National Flood Insurance Program Transparency and Accountability
* Institutes Deadlines for NFIP Claims Determinations. Requires NFIP administrators to make determinations on flood claims within 30 days of the initial filing, followed by any payment owed under the claim. Prevents claims denial based on Proof of Loss requirements. Establishes notice of a claim deadline within 60 days and moves the proof of loss deadline to 180 days.
* Increases Transparency for Engineering Reports and other Claims Document. Requires
* Increases Statute of Limitations for Disputed Claim Payments. Extends the Statute of Limitations for individuals to seek a judicial remedy for a disputed claim payment or a denial of a claim or appeal to 2 years after the flood event or 90 days after the claim is denied, whichever is later.
* Increases Accountability of NFIP Contractors. Gives
For a full summary of the bill, go to: https://www.gillibrand.senate.gov/imo/media/doc/Section_Summary.pdf.
To review of the legislative text, go to: https://www.gillibrand.senate.gov/imo/media/doc/Gillibrand%20Cassidy%20%20NFIP%20Legislative%20Text.pdf.
Read this original document at: https://www.gillibrand.senate.gov/news/press/release/as-short-term-flood-insurance-extension-set-to-expire-in-coming-months-gillibrand-urges-senate-to-pass-her-bipartisan-legislation-to-make-flood-insurance-more-affordable-for-new-yorkers_
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