Congresswoman Lois Frankel joined House colleagues to pass bipartisan flood insurance legislation that provides important flood insurance rate relief to homeowners and brings accountability to the National Flood Insurance Program (NFIP) and the Federal Emergency Management Agency (FEMA).

“I am pleased that the House has reached a reasonable compromise to end unaffordable flood insurance rate hikes and to protect homeowners and prospective homebuyers in Florida and other flood-prone states,” said Congresswoman Frankel.

The Senate can pass this legislation or negotiate with the House on a final bill.  In either case, there must be quick final action.

“Without a Congressional fix, Florida’s housing market and economy will be dramatically jeopardized,” Frankel said.

For the last few months, Congresswoman Frankel has pushed for a bipartisan approach to address skyrocketing flood insurance rates.  She has pointed out how owners of modest homes are seeing steep jumps in their flood insurance rates.

The new House legislation includes the following key provisions:

• Repeal of certain rate increase “triggers,” ensuring that no policyholder will experience dramatic rate increases from the sale of a home or a lapse in policy. 
• Restoration of “grandfathering,” so those who built properties to code in the past do not have to worry about catastrophic rate increases as a result of remapping.
• Lowering FEMA’s ability to increase rates, from 20 percent to 15 percent.
• Refunding excess premium charges to those who have paid significant rate increases.
• Completing the affordability study and framework.  The measure provides FEMA the funding necessary to complete the affordability study mandated in the Biggert-Waters Act.
• Individual property rate increase cap, providing that most individual rate increases cannot exceed 18 percent.  Under FEMA’s annual increase authority, the average increase is capped at 15 percent.  But without this individual cap, policyholders might still have experienced significant rate increases.
• Rate increase protection for newly mapped properties.  This provision requires FEMA to extend premium rate protection to all properties newly mapped into a special flood hazard area for the first year.  Upon renewal, these properties can receive average rate increases of 15 percent and no individual policyholder may receive an increase of more than 18 percent.  Without this language, there would be no cap on rate increases for properties newly mapped into a special flood hazard area, which often results in the highest rate increases.
• Mapping protections, requiring FEMA to notify communities and Members of Congress of remapping, mandating FEMA work with communities on appropriate data and mapping models.
• Consumer protection, which ensures policyholders receive clear information relating to their policy following certain changes in their policies, such as opting for high deductibles or foregoing flood insurance on certain detached structures.
• Protection of small businesses, non-profits, houses of worship, and residences.  The measure requires FEMA to monitor and report on affordability for small businesses, non-profits, houses of worship, and residences with less than 25 percent area median home value.  If FEMA finds detrimental effects on affordability, it must provide Congress recommendations to address these effects.

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