Rep. Tom Reed (R-N.Y.) said on Monday that legislation needs to be passed to permanently reform the Biggert-Waters Reform Act so owners of homes and businesses don’t face immediate, steep increases in flood insurance premiums.
The House of Representatives is likely to vote on the Homeowner Flood Insurance Affordability Act by the end of the week, Reed said.
“We’re advocating to make sure reforms are integrated in a fair way that protects hardworking taxpayers from a sharp, immediate rate increase,” Reed said. “What we’re hearing from homeowners is that the flood insurance program needs to be put on a glide path so reforms don’t suddenly gouge the pockets of taxpayers.”
The bill would prevent catastrophic rate increases that occur because of FEMA remapping by allowing the permanent grandfathering of plans. It would also provide a retroactive fund for those who have already dealt with premium increases through the sale or purchase of a home.
“Rate spikes have huge consequences on the job climate in the district,” Reed said. “It’s a real problem, impacting real people in the district. The next step is taking feedback from the district so that homeowners see affordable insurance at fair rates that allow them to care for their home and their financial security. That’s what the bill being considered this week is about.”
The bill would implement new affordability measures like high-deductible options, map certification, flood protection funding, escrow requirement exceptions and optional monthly installments.