NAFCU urged U.S. Senate leadership Friday to support efforts to delay the National Flood Insurance Program premium increases starting to take effect.
“NAFCU believes such increases should be delayed until at least such time as the Federal Emergency Management Agency (FEMA) completes its affordability impact study and Congress is able to review the findings,” said NAFCU Vice President of Legislative Affairs Brad Thaler in a letter to Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.).
“Failure to act in this regard could mean that premiums will skyrocket for many Americans struggling in these uncertain times. Furthermore, various local housing markets could face drastic negative impacts,” he added in the letter.
“Premiums will increase an average of 10% for policies written or renewed on or after October 1, 2013,” according to a FEMA document outlining the changes. “The premium for a particular policy may change more or less than the average change.”
Some states have announced that they are joining a lawsuit to fight the rate increases.
A bipartisan group of 24 senators wrote to McConnell and Reid on Oct. 10 calling for action on the issue.
“While we continue to work together for a comprehensive and fiscally responsible legislative solution, it is imperative that we provide immediate rate relief for impacted policyholders, and we request the inclusion of these provisions in any viable legislative vehicle that may be available,” the letter said.
Thaler said NAFCU is “already hearing reports from our member credit unions that these impacts are beginning to materialize, so any action on this matter must be timely.”