Cassidy and Waters Work Towards Reforming Biggert-Waters

Cassidy meets with Waters to reform flood insurance

by Ripon Advance Reports  |  October 14, 2013

Reps. Bill Cassidy (R-La.) and Maxine Waters (D-Calif.) met on Wednesday to talk about the Biggert-Waters Flood Insurance Reform Act and keeping insurance rates low for Americans.

“A bipartisan consensus is emerging that the National Flood Insurance Program must be reformed” Cassidy said. “This means adjusting the Biggert-Waters act so middle-class families are not priced out of the flood insurance market. It also means working to maintain and restore the home value of the many Americans facing excessive rate increases. Keeping flood insurance rates affordable is a top priority.”

Insurance rates are set by the NFIP to reflect true flood risk and make the program financially stable, according to the Federal Emergency Management Agency’s website.

The Biggert-Waters Flood Insurance Reform Act allows the National Flood Insurance Program to increase insurance premiums by 20 percent per year over a five-year period.

The law also reformed the rate structure to exclude certain properties from receiving subsidized insurance premiums, including non-primary residential properties, severe repetitive loss properties, business properties and any property that has been damaged by flood and the cumulative amounts of payments equaled or exceeded the fair market value of the property.

The law also prevents the extension of subsidized premiums to policies that are new or lapsed at the time the act was signed into law.

Members of the Congressional Home Protection Caucus also attended the meeting.