Bear
Well-Known Member
Changes are in progress in the House of Reps. as of June 22, 2017
"The House measures seek to reform and reauthorize the National Flood Insurance Program (NFIP), which is set to expire on September 30, for five years. The latest bills seek to address claims issues and questions about oversight of the Write Your Own Program (WYO) that arose after Hurricane Sandy; limit claim payments on repetitive flood properties; require the use of replacement cost value in determining premium rates; clarify that private insurance policies satisfy the mandatory insurance requirement and repeal the mandatory flood coverage requirement for commercial and multi-family properties located in flood hazard areas.
They are in addition to two bills approved last week that encourage more private insurance, move the program toward actuarial-based rates, enhance premium credits for mitigation efforts and seek to improve underwriting of urban properties.
The seven bills must still be packaged together and scheduled for a vote by the full House.
Package of Reforms
The seven bills combined would touch on almost every facet of the flood insurance program including financing, privatization, mitigation and mapping.
They seek to encourage more private insurer participation by eliminating the non-compete provision that keeps WYO carriers from selling private policies, directing the Federal Emergency Management Agency (FEMA) to give private insurers access to its historical loss data, exempting certain properties from the mandatory purchase requirement, and clarifying that private policies satisfy the purchase requirement.
In the area of mitigation, they call for stricter land regulations in high risk areas, credits and coverages that reflect rebuilding efforts, and more community-based flood mitigation plans.
For homeowners, certain provisions limit how much rates can rise every year and set a ceiling on the maximum a property owner would have to pay.
Other bills address the high cost of repetitive loss properties, strengthen FEMA’s oversight of the WYO claims process, lower the reimbursement WYO carriers receive, and encourage the NFIP to use reinsurance to limit its exposure to future losses.
“While we have a responsibility to provide certainty to the homeowners and small business owners who rely on the NFIP for protection, we must also ensure that the program protects the interests of hardworking taxpayers,” said Financial Services Committee Chairman Jeb Hensarling (R-Tex.). “These reform bills will benefit all Americans because they will invite private sector competition and lead to a sustainable flood insurance program – sustainable for homeowners, small business owners, residential and commercial real estate markets, and sustainable for hardworking taxpayers.”
http://www.insurancejournal.com/news/national/2017/06/22/455396.htm
https://www.fema.gov/flood-insurance-reform