Cartwright Applauds Passage of Flood Insurance Relief Bill

Press Release

Today, U.S. Representative Matt Cartwright announced the passage of H.R. 3370, the Homeowner Flood Insurance Flood Affordability Act of 2014.

If enacted, the bill would: repeal certain rate increase "triggers", meaning policyholders will no longer face higher rates resulting from the sale of a home or a lapse in policy coverage; restore "grandfathering", so homes and businesses built to code and later remapped into a higher risk area won't face rate increases as a result of remapping; cap FEMA's ability to raise annual insurance premium rates; and refund excess premium fees to those affected by the Biggert-Waters Flood Insurance Reform Act of 2012.

"After months of hard work, lawmakers were able to reach a bipartisan agreement that will ensure relief for hundreds of homeowners living in flood prone areas right here in northeastern Pennsylvania," said Cartwright.

Currently, people living in flood plains across the nation have seen sharp rises in their flood insurance premiums.

Jeff King, of Regent Street in Wilkes-Barre, whose house lies near Solomon Creek, has been trying to sell his three-story, four-bedroom home since July of 2013, before he even knew about the increased rates being put in place because of the Biggert-Waters Flood Insurance Reform Act of 2012. Any new buyer of the home would face a flood insurance premium increase of nearly 600 percent, from just under $1,000 to nearly $7,000, and such an increase obviously makes completing a sale exceedingly difficult if not impossible.

"If enacted into law, H.R.3370 will prevent this 600 percent increase from happening to whomever buys Jeff King's house. It will also help guard against dramatic rate hikes in flood insurance premiums that have made many policies unaffordable, depressed home prices, and undercut the ability to buy or sell a home," said Cartwright.

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