25 Mar Flood Insurance Update
Community Associations Institute applauds the U.S. Senate for following the U.S. House of Representatives in approving H.R. 3370, the “Homeowner Flood Insurance Affordability Act.” The legislation will be forwarded to President Obama for his signature into law.
“Congress agreed with community association homeowners across the country that well-intended reforms to the National Flood Insurance Program went too far. CAI supports a National Flood Insurance Program that is not subsidized by American taxpayers. However Biggert-Waters created a situation where community association homeowners and residents were facing exorbitant increases in flood insurance premiums that called into question the ability to insure homes and common property,” said Dawn M. Bauman, CAI’s Senior Vice President of Government and Public Affairs.
H.R. 3370 provides direct relief to homeowners facing exorbitant increases in flood insurance premiums as a result of the Biggert-Waters Flood Insurance Reform Act of 2012. The Biggert-Waters Act required that all flood insurance policies transition to actuarial premiums. As a result, many homeowners across the country faced flood insurance premium increases of more than 500 percent, calling into question the ability to maintain flood insurance coverage.
The legislation provides a more sustainable flood insurance premium structure that will lead to more homes and businesses being covered by flood insurance. H.R. 3370 also improves flood zone mapping procedures and imposes a fee on policyholders whose premiums do not reflect actual flood risk.
“Yesterday’s vote in the Senate is the culmination of months of bipartisan effort in Congress. CAI applauds the hard work of lawmakers to quickly address the needs of homeowners and community associations,” said Bauman.
For additional information on H.R. 3370, click here.
CAI Government Affairs represents the interests of the 62.5 million people living and working in America’s community associations on legislative and regulatory issues at the local, state, and federal level of government. Contact CAI’s Government Affairs Department at email@example.com or (888) 224-4321 with any questions.