We recently wrote about the Senate vote to advance the Homeowners Flood Insurance Act and the House of Reprentative’s Homeowner Flood Insurance Affordability Act, which would prevent higher flood insurance premiums from being forced on primary homeowners trying to sell property and would assure that homes built to meet current flood zone map regulations would not be reclassified under a new map and face much higher rates. On March 13th, the Senate approved H.R. 3370, the “Homeowner Flood Insurance Affordability Act of 2013,” by Senator Bob Menendez and Representative Michael Grimm.
Basically, this bill will curb flood insurance premium increases and reverse flood insurance reforms introduced by the Biggert-Waters Flood Insurance Reform Act. The House passed the bill on March 4 in a 306-91 vote and then the Senate approved the bill in a 72-22 vote. The bill restores “grandfathering” of policies in communities with new flood maps and reinstates subsidies for pre-FIRM properties that are bought and sold.
This bill will pay for itself through annual reserve fund assessments of $25 per year for primary residences and $250 a year for business and vacation homes, thus it will not add to the $25 billion debt of the National Flood Insurance Program.