NFIP Rate Hikes Rile Senators at Hearing
Members of a Senate Banking Committee who overwhelmingly supported passage of legislation in 2012 that imposes actuarial rates on flood insurance premiums scheduled to go into effect next month sought to distance themselves from their past votes at a 150-minute hearing Wednesday.
At the hearing, senators from Oregon to Massachusetts talked about “implementation” and “affordability” concerns in seeking to anticipate angry voter feedback as the property owners open insurance bills starting Oct. 1 that reflect increases mandated by the Biggert-Waters Act of 2012.
Sen. Elizabeth Warren (D-Mass.) added that, “Over time, I agree it makes sense to move to market rates for flood insurance, but why does it make sense for FEMA to implement the new rates at the same time they’re updating the flood maps?
“There is a major impact on first time home buyers,” she said. “Homeowners in Massachusetts are being asked to pay thousands of dollars that they weren’t asked to pay before,” Warren said. “And seniors on fixed income don’t know what to do.”