Friday, May 13, 2011

Flood Insurance Reform Act Passed Out of House Committee

The "Flood Insurance Reform Act of 2011" – H.R. 1309 was passed out of the House Financial Services Committee and on to the full House by a unanimous (54-0) vote today (May 13), in an effort the bill's supporters say would save the National Flood Insurance Program from all-but-certain insolvency.

The bill would reauthorize the National Flood Insurance Program (a program intended to reduce flood risk, encourage smart floodplain management and provide affordable flood insurance) through September 30, 2016.   It proposes to reduce the program's current deficit with phased-in annual policyholder rate increases over the five-year term of the legislation.  Among other reforms, the bill would also create a "Technical Mapping Advisory Council" to propose new mapping standards for 100-year flood insurance rate maps used under the national flood insurance program, which would, among other things, "ensure that the flood insurance rate maps reflect true risk" to each property.

HR 1309 was introduced on April 1 by Rep. Judy Biggert (R-IL-13th), Chair of the Insurance, Housing and Community Opportunity Subcommittee of the House Financial Services Committee.  Eight House Members co-sponsored the bill, which was referred to Rep. Biggert's subcommittee, where it was agreed to by voice vote following a markup during an April 6 work session (the markup resulted in the addition of four amendments).

The 2011 bill is essentially the same as H.R. 5114, the “Flood Insurance Reform and Priorities Act of 2010,” introduced by Rep. Maxine Waters (D-CA-35th) and passed by the House 329-90 last July, but never considered by the Senate.

On September 30, 2010, the President signed the National Flood Insurance Program Reextension Act of 2010, which Congress passed on September 24, 2010. That law extended the National Flood Insurance Program until September 30, 2011.

1 comment:

  1. Many times there is a risk of the flood. So this can be good news such that Flood Insurance Reform Act has passed out of house committee. So any damage while occur during the flood can be retained by this insurance.