Senate passes flood insurance bill

The U.S Senate voted 72-22 to approve a bill that would continue government subsidies for flood insurance for people in flood zones, protecting them from often-significant rate hikes that were going into effect.

The Homeowner Flood Insurance Affordability Act, which had bipartisan support, was in response to the 2012 Biggert-Waters law. As REALTOR® magazine explained, Biggert-Waters

set out to gradually phase out flood insurance subsidies as a way to make up for the National Flood Insurance Program’s $24 billion debt. As a result, home owners who had received federal aid to pay for flood insurance were being faced with tens of thousands of dollars a year in flood insurance hikes.

“As the leading advocate for home and property owners, NAR applauds this bill for the relief and protection it will bring to businesses and families nationwide.  We believe this legislation will bring relief to property owners by ensuring a slow and steady phase in of risk-based increases,” said NAR President Steve Brown.

The House had previously passed its version of the bill, and President Obama is expected to sign it.

 

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
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2 Responses to Senate passes flood insurance bill

  1. John Edelmann says:

    I think this is a sort sighted bill and am disappointed our association supported the continued subsidy. the costs as seas rise will be horrendous and people will still build in the worst flood zones.

  2. Pat Loftus says:

    My great grandmother purchased beach front properties in the 1930s. At that time it was common for storms to wash over these houses. The houses were bungalows and built with wood that contained a high percentage of oils and could withstand the sea water.. The furnishings were mostly wicker. After the big storms, which occurred about every five years, the disposables such as mattressesand carpets were thrown away. The house and the durable furnishings were cleaned with pressure hoses and chlorine. These were simpler structures than today’s mansions. They were ready to rent the house in the next season. Renting out beach properties was profitable despite the storms. She would be amazed that modern houses on the coasts are insured with federal subsidies.

    It doesn’t make sense to build McMansions right on the ocean front. Eventually they will be destroyed at a staggering cost to taxpayers.. There have been decades of relatively milder weather but that can’t continue forever. Those who choose to build houses in areas prone to floods should bear the full cost. It will still be profitable to build houses on the beach, perhaps lacking the wall-to-wall carpets, etc.

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