The Federal Insurance and Mitigation Administration announced on Thursday that proposed flood insurance rate increases will be delayed for 12 to 18 months due to an amendment to the federal omnibus spending bill introduced by Rep. Bill Cassidy (R-La.).
“This is great news for many working families in Louisiana,” Cassidy said. “This announcement means that nearly 400,000 Louisiana homeowners won’t face flood insurance rate hikes (for) as long as June 2016. Meanwhile, we will continue working for longer-term and permanent flood insurance reforms.”
The Biggert-Waters Flood Insurance Reform Act of 2012 reformed the National Flood Insurance Program to reduce its dependency on taxpayer funding and address the program’s $24 billion deficit. Flood insurance rate maps were redrafted under the measure, which would lead to higher premiums for some homeowners and business owners.
The Cassidy Amendment suspended the insurance rate increases through October, and FEMA planning and development activities for the section of BW12 that pertains to the rate hikes won’t be funded until then.
The NFIP anticipates that it will take 12 to 18 months after funding is restored for FEMA to develop guidance materials and move forward with that section of BW12, which means the delay could extend to June 2016, according to the Federal Insurance and Mitigation Administration.