National Flood Insurance Program Undergoes Reform
Last month, the House Financial Services Committee met to discuss the future of the National Flood Insurance Program. The primary goal is to eliminate homeowners in flood zones from being denied a flood insurance policy. At the Committee meetings, several bills were passed.
The first bill, which was unanimously passed, is the National Flood Insurance Program Policyholder Protection Act of 2017. It serves to prevent any policyholders from being charged unreasonably high rates on their flood insurance premiums. In addition, the bill will require FEMA to investigate the coverage policies in urban areas offered by flood insurance companies. FEMA will have to collect 1% more money for their reserve fund each year.
The second bill passed at the meeting was the 21st Century Flood Reform Act of 2017, with 30 members voting in favor of the bill. This serves to financially stabilize the National Flood Insurance Program, and improve it in all other aspects. For example, the Act will update regional maps as well as make improvements to the technology used to more accurately determine the flood risk in each area. The bill also aims to allow private markets to play a larger role in managing flood insurance.
Other bills related to the flood insurance industry that were passed include the Taxpayer Exposure Mitigation Act of 2017, the Flood Insurance Market Parity and Modernization Act, the Repeatedly Flooded Communities Preparation Act, the National Flood Insurance Program Administrative Reform Act of 2016, and finally, a bill simply called HR 2565.
If your home is in a designated flood zone, it is important to understand the changes in these laws.
The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.