Himes Applauds Passage of Flood Insurance Cooperation

Press Release

Congressman Jim Himes (CT-4) today applauded passage of flood insurance legislation that will slow premium increases for federal flood insurance.

"With so many people still recovering from Superstorm Sandy, they can't afford the double blow that a drastic premium increase will cause in addition to the expenses of rebuilding," Himes said. "Over time, we need to ensure this program pays for itself and that we don't subsidize people who choose to build in unsafe places, but the process needs to be fair to all homeowners, especially those whose flood plain designation changes after they own their home. This bill is a good step in that direction."

The Homeowner Flood Insurance Affordability Act passed Congress today with overwhelming bipartisan support. The legislation limits any annual premium increase to 18%, allows individuals purchasing covered homes to also assume the subsidized flood insurance (rather than immediately pay full, actuarially sound rates) and restores "grandfathered" properties under prior law so that owners would pay rates applicable to the original flood risk zone, rather than updated risks.

To offset the cost of these changes, annual surcharges would be imposed on all policies: $25 a year for primary residences and $250 a year for second homes, businesses and other non-residential properties. The bill responds to the sharp increases in premiums triggered by the 2012 law, which have been unaffordable for many homeowners and made it difficult to sell homes.

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