Hagan's Flood Insurance Amendment Included in Bipartisan Bill to Prevent Steep Flood Insurance Rate Increases

Press Release

U.S. Senator Kay Hagan today helped pass bipartisan flood insurance legislation that includes her amendment to prevent homeowners from escrowing flood insurance premiums twice. The Homeowner Flood Insurance Affordability Act, which delays steep flood insurance rate increases, passed the House of Representatives with widespread bipartisan support earlier this month, and the bill now heads to the President's desk to be signed into law.

"North Carolina homeowners who have played by the rules should not be saddled with steep flood insurance rate hikes that could mean financial ruin for too many people," Hagan said. "I'm pleased the House and Senate have passed this bipartisan bill that prevents sharp rate increases and includes my commonsense amendment to prevent homeowners from having to escrow flood insurance premiums twice."

Hagan's amendment ensures borrowers with certain types of residential loans, including second mortgages or loans to purchase a property with an already existing master policy such as a condo, are not forced to escrow flood insurance premiums twice or go through the laborious process of proving to a lender that they already have coverage.

Without Congressional action, as many as four million homeowners and businesses across the country would have faced steep rate increases for flood insurance.

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