CAI Continues to take an active role in combating impending rate hikes on National Flood Insurance Program policies.
Congress adjourned for 2013 without reversing flood insurance premium hikes as mandated by the Biggert Waters Flood Insurance Reform (Biggert-Waters) Act. The premium increases, which will be implemented in phases, are already impacting homeowners across the country.
In the waning hours of the 2013 congressional session, attempts to force a vote on flood insurance rate relief failed in both the U.S. Senate and House of Representatives. In the Senate, supporters of the Homeowner Flood Insurance Affordability Act (HFIA) were unable to overcome opposition from the Republican leadership of the Senate Banking Committee. In the House, HFIA supporters successfully blocked a last minute attempt to undermine their momentum, but ultimately were unable to bring HFIA to a vote.
CAI supports a more financially stable NFIP that more accurately reflects the real risk of flooding. However, under the current law, the sale of a property removes the 5-year transition to actuarially sound premiums and requires the new or current owner to immediately pay full risk rates. This can be a significant financial hit on the current or new owner that may stop the sale of the home. As the housing market is making minor improvements, this creates another hurdle for sales in these communities. This is causing hardship in Alabama California, Connecticut, Delaware, Florida, Georgia, Massachusetts, New Jersey, New York, North Carolina, South Carolina, Texas and other communities that were not affected by the re-mapping, but are affected by this potential unintended consequence of the new law.
Despite these seeming setbacks, the prospects for flood insurance rate relief may have improved for 2014. As CAI and its partners in the Coalition for Sustainable Flood Insurance continue to pick up key allies in the senate, there is hope that a fix is not too far in the distant future.
