Bilirakis Sponsors Legislation to Provide Flood Insurance Relief to Homeowners
10/24/13
Washington, D.C. – Congressman Gus M. Bilirakis (R-FL) has introduced H.R. 3312, the Homeowners Flood Insurance Relief Act, to address increasing National Flood Insurance Program (NFIP) premiums. The legislation would ensure the NFIP remains sustainable for taxpayers and affordable for homeowners by capping premiums to no more than the appraised value of the structure over the course of a 30-year mortgage. It would also phase-in rate increases over 10 years and allow homeowners to pay premiums on a monthly basis rather than an annual lump sum.
“Homeowners across the country are currently facing significant rate increases as a result of reforms made to address the solvency of the NFIP,” said Bilirakis. “This legislation is a backstop for catastrophic rate increases that have not only created significant hardship for hardworking Americans, but also have the potential to limit or freeze home sales that would help in the recovery of our already fragile housing market.”
Recent news articles have cited that annual rates for properties in low-lying areas, especially near the coast, may double or go up tenfold this year, depending on base flood elevation. In Florida, some estimates have totaled more than $20,000 per year. The commonsense changes included in the Homeowners Flood Insurance Relief Act will ensure that homeowners continue to safeguard their properties through the program, while minimizing the effects of increased premiums on the housing market’s recovery.
As a result of Hurricanes Sandy and Katrina, the NFIP is currently indebted $24 billion to U.S. taxpayers. The Biggert-Waters Reform Act of 2012 intended to reform NFIP premiums to reflect the cost of coverage. However, rates increased so dramatically over a short period of time that the reforms may actually be counterproductive.
###
Washington, D.C. – Congressman Gus M. Bilirakis (R-FL) has introduced H.R. 3312, the Homeowners Flood Insurance Relief Act, to address increasing National Flood Insurance Program (NFIP) premiums. The legislation would ensure the NFIP remains sustainable for taxpayers and affordable for homeowners by capping premiums to no more than the appraised value of the structure over the course of a 30-year mortgage. It would also phase-in rate increases over 10 years and allow homeowners to pay premiums on a monthly basis rather than an annual lump sum.
“Homeowners across the country are currently facing significant rate increases as a result of reforms made to address the solvency of the NFIP,” said Bilirakis. “This legislation is a backstop for catastrophic rate increases that have not only created significant hardship for hardworking Americans, but also have the potential to limit or freeze home sales that would help in the recovery of our already fragile housing market.”
Recent news articles have cited that annual rates for properties in low-lying areas, especially near the coast, may double or go up tenfold this year, depending on base flood elevation. In Florida, some estimates have totaled more than $20,000 per year. The commonsense changes included in the Homeowners Flood Insurance Relief Act will ensure that homeowners continue to safeguard their properties through the program, while minimizing the effects of increased premiums on the housing market’s recovery.
As a result of Hurricanes Sandy and Katrina, the NFIP is currently indebted $24 billion to U.S. taxpayers. The Biggert-Waters Reform Act of 2012 intended to reform NFIP premiums to reflect the cost of coverage. However, rates increased so dramatically over a short period of time that the reforms may actually be counterproductive.
###
Washington, D.C. – Congressman Gus M. Bilirakis (R-FL) has introduced H.R. 3312, the Homeowners Flood Insurance Relief Act, to address increasing National Flood Insurance Program (NFIP) premiums. The legislation would ensure the NFIP remains sustainable for taxpayers and affordable for homeowners by capping premiums to no more than the appraised value of the structure over the course of a 30-year mortgage. It would also phase-in rate increases over 10 years and allow homeowners to pay premiums on a monthly basis rather than an annual lump sum.
“Homeowners across the country are currently facing significant rate increases as a result of reforms made to address the solvency of the NFIP,” said Bilirakis. “This legislation is a backstop for catastrophic rate increases that have not only created significant hardship for hardworking Americans, but also have the potential to limit or freeze home sales that would help in the recovery of our already fragile housing market.”
Recent news articles have cited that annual rates for properties in low-lying areas, especially near the coast, may double or go up tenfold this year, depending on base flood elevation. In Florida, some estimates have totaled more than $20,000 per year. The commonsense changes included in the Homeowners Flood Insurance Relief Act will ensure that homeowners continue to safeguard their properties through the program, while minimizing the effects of increased premiums on the housing market’s recovery.
As a result of Hurricanes Sandy and Katrina, the NFIP is currently indebted $24 billion to U.S. taxpayers. The Biggert-Waters Reform Act of 2012 intended to reform NFIP premiums to reflect the cost of coverage. However, rates increased so dramatically over a short period of time that the reforms may actually be counterproductive.
###
Let us be clear, NFIP had surpluses for most of its existence that should have it $6 billion in the black, and as to who profited from that situation is likely the treasury and/or insurance companies, that needs to be clarified. NFIP should take monies that have not been paid out to premiums and keep it in a trust fund.... oh wait, that's what they were supposed to do with social security.
ReplyDeleteExcept for the 10 year phase in, the Bilirakis legislation would probably have zero effect on people around here. If you have a mortgage and therefore are forced to get flood insurance, you are already paying on a monthly basis, because the bank pays the bill from the escrow account that you pay into every month. Capping premiums to no more than the appraised value of the structure over 30 years? Maybe. Unless FEMA is the one doing the appraisal.
ReplyDelete