Pallone & Pascrell Announce Support for Comprehensive Flood Insurance Reform Bill
"In the aftermath of Sandy many of my constituents found that, after responsibly paying for their flood insurance, their policy failed to provide the coverage they needed and deserved in their time of need. Many were prevented from repairing their homes and resuming their lives by a claims review process that moved too slowly and was riddled with fraud," said
"After seeing the devastation of Superstorm Sandy and all the challenges New Jerseyans faced in its aftermath, I know that getting the reauthorization of the National Flood Insurance Program right is a crucial aspect of preparing for a future storm" said
The legislation includes:
The Sustainable, Affordable, Fair, and Efficient (SAFE)
NFIP Reauthorization Act of 2017
Long-Term Certainty. Reauthorizes the NFIP for six years, providing certainty for communities.
No Exorbitant Rate Hikes. Ends runaway premium hikes by capping annual increases to 10 percent. Currently, premiums increase by up to 25 percent every year, depressing property values, creating affordability challenges, and discouraging participation in the program.
Cuts Wasteful Expenses to Pay for Investments. Freezes interest payments and establishes new controls for private insurance company compensation in order to reinvest in proactive mitigation efforts and affordability measures, including low-interest loans for homeowners' mitigation projects and affordability vouchers.
Strong Investments in Mitigation. Provides robust funding levels for large-scale, communitywide mitigation efforts, and mitigation assistance programs, which have a 4:1 return on investment and are the most effective way to reduce flood risk.
Expanded Increased Cost of Compliance (ICC) Coverage. Increases the maximum limit for ICC coverage to better reflect the costs of mitigation projects and expands eligibility in order to encourage more proactive mitigation before natural disasters strike.
LiDAR Mapping. Authorizes funding for Light Detection and Ranging (LiDAR) technology for more accurate mapping of flood risk across the country, reducing confusion and generating better data.
Oversight of Write Your Own (WYO) Companies. Caps compensation for WYO companies to 22.4 percent of written premiums, creates new oversight measures for insurance companies and vendors, and provides
Claims and Appeals Process Reforms Based on Lessons from Sandy. Fundamentally reforms the claims process based on lessons learned after Superstorm Sandy and other disasters, leveling the playing field for policyholders during appeals and litigation by holding
Better Training. Provides for increased training and certification of agents and adjusters to reduce mistakes and improve the customer experience.
Read this original document at: https://pallone.house.gov/press-release/pallone-pascrell-announce-support-comprehensive-flood-insurance-reform-bill
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