A month in to the latest round of National Flood Insurance Program (NFIP) premium increases, a bipartisan group of House Members and Senators introduced legislation last week to delay certain aspects of last year's Biggert-Waters Flood Insurance Reform Act of 2012. Insurance premium rates increased under the NFIP on October 1st and many homeowners and businesses are finding the higher rates to be unaffordable. One of the most affected groups is new policy owners who are now having to pay flood insurance rates which far exceed historic rates for the property. Many experts believe the rate increases will dramatically impact real estate markets by driving down the worth of homes located in the floodplain. Others fear the impacts to businesses could force many to close their doors.
The bills introduced last week call for a four year delay of many Biggert-Waters 2012 provisions and make it mandatory for the Federal Emergency Management Agency (FEMA) to complete a study on the affordability of the rate increases. The bill also requires that FEMA's recently remapped flood maps be certified before rate increases go into effect.
The outlook for passage of the bill could be tough as leaders deal with final budget plans and other issues before adjourning for the year. But the support is strong with nearly 100 supporters in the House and 17 in the Senate. Perhaps this is one issue this Congress can agree upon.
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