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Tuesday, October 22, 2013

Legislators Hope to Delay Flood Insurance Rate Increase Until 2-Years After FEMA Affordability Study

According to reports from The Times-Picayune, a bipartisan group of House members, concerned about the impact the flood insurance rate increases could have on their constituents, are working to draft legislation in the upcoming weeks that would delay the premium rate increases until two years after FEMA completes an affordability study. If they are successful, the flood insurance rate increases could be delayed by a total of four years because the affordability study is not expected to be completed for another two years.

The House members have two outstanding issues to consider before proceeding with their plan: they need to identify a "must pass" piece of legislation they can add the two-year delay to and they must find a way to cover the lost revenue resulting from the delay in raising premiums.