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Monday, March 18, 2013

House Bill Would Delay NFIP Rate Hikes for Sandy Victims

Last week, a bipartisan group of Representatives from New York introduced a bill in the House that would delay flood insurance premium increases for those hit by Hurricane Sandy.

The primary sponsors are Rep. Grimm (R-NY) and Rep. Meeks (D-NY).  Co-sponsors include Reps. Rangel (D-NY), Engel (D-NY), Nadler (D-NY), King (R-NY) and other House members from New York.

According to Rep. Grimm, H.R. 960, the Flood Victim Premium Relief Act of 2013, would extend the "premium increase timeline for primary residences in areas declared a federal disaster area after July 6, 2012 from 5 years to 8 years."

Under the Biggert-Waters Flood Insurance Reform Act of 2012, the maximum rate increase the National Flood Insurance Program (NFIP) could impose in a given year was raised from 10% to 20%. This was done as an attempt to bring the heavily indebted program back to solvency over time. H.R. 960 would slow the rate of increase in declared disaster areas for the first four years after a remapping from 20% per year to 5% per year, with rates in years 5 through 8 returning to the original 20% a year increases.

Learn more from Rep. Grimm.