Today, U.S. Rep. Dennis A. Ross (R-FL), reintroduced H.R. 1422, the Flood Insurance Market Parity and Modernization Act, with Rep. Kathy Castor (D-FL). This legislation would encourage the development of a private flood insurance market that can offer homeowners options in terms of pricing and coverage. Senator Dean Heller (R-NV) and Senator Jon Tester (D-MT) also reintroduced the Senate version of the bill, S. 563. Last year, this legislation passed in the House of Representatives by a 419-0 vote.
The American Bankers Association has long supported both legislative and regulatory efforts to ensure that private flood insurance policies are more readily available as an alternative to the NFIP. We strongly support the efforts to pass legislation making this possible.
Providing consumers with alternatives to the National Flood Insurance Program (NFIP) and driving down flood insurance prices through greater competition is one way to ensure greater protection for consumers against flood damages in the mortgage markets; it is also a significant contribution to the goal of returning the NFIP to more robust fiscal health. Additionally, your legislation will make it possible for borrowers and lenders to shop for flood insurance in the same manner currently provided for home owners’ insurance. This simplification of the process will make it vastly easier for borrowers to obtain flood insurance at a competitive price.