Flood concerns: Casey and others seek to delay flood premium increases

Intelligencer Journal
Lancaster New Era

Dec 17, 2013 09:45

Lancaster

If you live near a flood zone, pay attention.

Last week, Sen. Bob Casey, D-Pa., lent his support to a growing list of lawmakers who are attempting to delay implementation of the 2012 flood insurance reform act.

That act, also known as the Biggert-Waters Act, requires the National Flood Insurance Program to raise insurance rates for some older properties in high-risk areas to reflect true flood risk. The new law was supposed to deal with funding gaps while still making flood insurance affordable. That includes homes located in flood-prone areas based on maps the Federal Emergency Management Agency has recently created.

But the cost of the new premiums is so high, many people will not be able to afford flood insurance. That could affect as many as 34,000 Pennsylvanians, including some in Lancaster County.

In response, 24 U.S. Senators, Republicans and Democrats, including Casey, have pushed for passage of the Homeowner Flood Insurance Affordability Act — a measure that would stay the rate increases for the next four years.

Without action, owners of properties that have experienced severe or repeated flooding, including those in Manheim and Marietta — could face premium increases of as much as 25 percent.

Casey and others have argued that the new maps drawn up by FEMA now include properties that were not previously considered flood-prone. That has increased the number of affected homes. The maps determine flood insurance rates.

Pennsylvania is the seventh-most flood-affected state and Allegheny, Bucks, Dauphin and Lycoming are among the most impacted counties.

The Homeowner Flood Insurance Affordability Act would delay increases for:

• homes currently grandfathered;

• all properties that purchased a policy after July 6, 2012, before they were legally required to purchase flood insurance; and,

• all properties sold after that date would be able to rely on the previously purchased policy.

The delay also would require FEMA to ensure the accuracy of its maps and allow homeowners to appeal their new rates.

Flood insurance is a requirement for people living in flood-prone areas. It has long been subsidized by the federal government but administered and sold through private insurers or agents.

The high costs associated with recent flooding in the nation have created a funding gap. But placing that burden on the backs of people whose homes predate mapping or whose homes were not previously considered to be in flood zones and not alllowing them to appeal is draconian.

The reform act of 2012 was well-intentioned. The new cost structure, however, jeopardizes the No. 1 objective of the program which was to make flood insurance affordable for those living in flood-prone areas.

The Homeowner Flood Insurance Affordability Act provides FEMA time to complete the mandated affordability study to ensure that responsible homeowners aren't priced out of the program and offers them the chance to appeal if they so desire.