Senate Panel Supports Delay on Some NFIP Rate Increases
A panel of the Senate Appropriations Committee has voted to effectively stop the Federal Emergency Management Agency from implementing a provision of the 2012 law reauthorizing the National Flood Insurance Program that mandates phased-in rate increases for grandfathered properties.
The provision barring FEMA from implementing Sec. 207 of the 2012 Biggert-Waters Act was passed by the Senate Appropriations Subcommittee on Tuesday and will be considered by the full committee on Thursday.
Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies, cautioned that “any effort to delay the reforms enacted last year could ultimately weaken the NFIP.”
Grande said the reforms were designed to move the NFIP towards fiscal stability and at the same time to show policyholders the true risk they face from flooding.