2 Yrs After Reforms, Congress Resumes Heavily Subsidized Flood Insurance For High-Risk Areas

[hatrack]

Because Freedom, whining.

WASHINGTON (AP) — Less than two years after Congress approved a landmark bill to overhaul the federal flood insurance program, lawmakers are poised to undo many of the changes after homeowners in flood-prone areas complained about sharp increases in premiums.

The House overwhelmingly passed a bill Tuesday night that would allow sellers to give their subsidized, below-market insurance rates to new buyers and lower the cap on how much flood insurance premiums can rise each year.

Rep. Michael Grimm, a New York Republican who co-sponsored the bill, said it would ensure that families across the country, including those still struggling to recover from Superstorm Sandy, can avoid "a wave of devastating premium hikes and foreclosures." The Senate could soon follow. Sen. Robert Menendez, D-N.J., says he supports the House measure, which mirrors a bill he sponsored and the Senate approved in January.

The House bill "will end the most egregious problems with the flood insurance program and bring some real relief to thousands of homeowners who desperately need our help," Menendez said in a statement Tuesday night. "I'm encouraged by this progress and hope we can bring the bill over the finish line very, very soon."

EDIT

http://www.sfgate.com/news/politics/article/2-years-later-Congress-poised-to-undo-flood-law-5289915.php

[HooptieWagon]

1. The "reform" was badly flawed.

For example, Some areas of Florida were to see insurance rates go 10 times higher. Not beach-front mega-mansions, mind you, but modest retiree homes. As a whole, since 1978 Florida has recieved claims amounting to only 23¢ per dollar paid in premiums. That despite several major hurricanes, and much storm flooding. Real reform, based on real data, would seem to indicate Floridians were already paying far to high a rate, collectively, than was warranted. FEMA's flood maps were ridiculously in error, there was no recourse available to average homeowners other than expensive litigation. The supposed reform was based on bad data and rushed through Congress. It should be repealed, and a more carefully thought out plan implemented.