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Mark A. Hofmann

House to consider modified version of NFIP reform bill

February 13, 2014 - 2:40pm

National Flood Insurance Program


The House of Representatives will consider a modified version of the Homeowner Flood Insurance Affordability Act the week of Feb. 24, House Majority Leader Eric Cantor, R-Va., said Wednesday.

The Senate in late January approved its version of the measure, which would delay implementation of risk-based rates for the National Flood Insurance Program for four years.

Having the NFIP charge risk-based rates for flood coverage is a key provision of the Biggert-Waters Flood Insurance Reform Act of 2012. The Obama administration and most of the property/casualty insurance industry support the rate reforms contained in the act, but lawmakers faced a storm of protest after policyholders began receiving higher bills for coverage under the NFIP, which is about $24 billion in debt.

“The Senate bill irresponsibly removes much-needed reforms and imposes additional costs on taxpayers,” said Rep. Cantor in a statement. “The House will act to protect the flood insurance program but also protect homeowners from unreasonable and unrealistic premium increases.”

Text of the legislation and additional details will be available later, he said.

 



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