Nov 14 2017
WASHINGTON, DC -- Today, U.S. Rep. Harold "Hal" Rogers (KY-05) voted for the 21st Century Flood Reform Act (H.R. 2874), to improve the taxpayer-backed National Flood Insurance Program (NFIP), created in 1986. The legislation is a collection of seven bills approved by the Financial Services Committee to reauthorize the NFIP for five years, introduce private market competition and provide affordable coverage for policyholders.
"In Eastern Kentucky, our communities along the Cumberland River suffered deadly and devastating flash flooding for decades before flood walls and levies were built to mitigate future damage. Still today, some of our local families and communities struggle with flood insurance costs and coverage, proving the need for insurance reform," said Congressman Rogers, who voted for the legislation. "This legislation breaks up the monopoly of government flood insurance, which has operated on the backs of taxpayers to the tune of over $30 billion, yet still maintains a $1.4 billion annual deficit. Reform is necessary to cover recovery costs for flooding disasters in the future."
The legislation will develop a Flood Damage Savings Account for individual policyholders to reduce or eliminate NFIP premiums. It also decreases the cap on annual rate increases and surcharges on low-risk properties.
It simplifies the Federal Emergency Management Agency's (FEMA) process of identifying and addressing at-risk properties, while prioritizing mitigation assistance for multiple-loss properties.
The legislation now moves to the U.S. Senate for consideration.