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Wednesday, June 5, 2013

ABIA, ABA Support Flood Insurance Rate Delays

ABIA and ABA wrote this week to support an amendment offered by Rep. Bill Cassidy (R-La.) that would temporarily delay some rate increases in the National Flood Insurance Program (NFIP).

"While both ABA and ABIA remain committed to moving to actuarial rates for flood insurance coverage under the NFIP, we recognize that a greater transition period may be necessary in order to ensure continued afford ability for thousands of middle and low income homeowners and small businesses," the groups wrote. "Therefore, we support your amendment, which would delay any phase-out of grandfathered NFIP rates for existing policy holders for one year."

The groups added that the passage of the Biggert-Waters Flood Insurance Reform Act last year illustrated the need for additional actions, and extra time, to protect affordability and foster a private marketplace. Cassidy will offer his amendment to the Department of Homeland Security appropriations bill scheduled for consideration by the full House this week.

Read the letter.