Blunt amendment included in flood insurance bill

Sen. Roy Blunt (R-Mo.) authored an amendment to the flood insurance bill approved by the Senate on Thursday that aims to protect private sector jobs, homeowners and property values across the nation.

Under current law, home renovations or remodeling projects that exceed 30 percent of a home’s fair market value trigger flood insurance rate increases. The costs associated with crossing the 30 percent threshold could put as much as $8.5 billion in remodeling projects at risk, according to the National Association of Home Builders.

The amendment introduced by Blunt would return the threshold for “substantial improvements” that trigger higher flood insurance rates and other associated costs to its historic level of 50 percent.

Homeowners in Missouri spent $2.6 billion on home remodeling projects, averaging approximately $1,600 per owner-occupied home, according to NAHB.

“I’m pleased the Senate passed this commonsense provision, which will help protect private sector jobs and property values in Missouri and nationwide,” Blunt said. “By encouraging people to maintain and repair homes, this amendment will protect communities across America from potentially costly job losses and lower home values.”

More than 1,600 Missouri remodeling businesses were operational in 2012, according the Department of Labor’s Bureau of Labor Statistics.