Aim to Cap Flood Insurance Rate Hikes

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Citizen Staff

U.S. Rep. Ileana Ros-Lehtinen has proposed limiting flood insurance rate increases through an amendment to the reauthorization of the National Flood Insurance Program.
Congress is going through the process of reauthorizing the program, which is administered by the Federal Emergency Management Agency (FEMA), and makes flood insurance more affordable.
Under current proposals, FEMA could raise rates by 20 percent per year, as opposed to the current 10 percent per year, Ros-Lehtinen said in a press release issued Tuesday. The Florida Keys representative said she is concerned the government will set rules that call for premiums to increase 100 percent or more per year. The Miami Republican's amendment, which she said other South Florida Congressional Delegation members support, would cap increases to the current 10 percent.
Ros-Lehtinen addressed the House floor Tuesday."I am hopeful that my colleagues will support my amendment to the legislation to keep yearly rate increases at no more than 10 percent," she said. "During these difficult economic times, it is irresponsible to allow rates to rise 20 percent per year when America's families are struggling to make ends meet."
The reauthorization will extend the National Flood Insurance Program through 2016, and in doing so will avoid the short-term extensions that have been put in place the past several years, she said.
In 2010, the program was allowed to lapse three times, causing instability in the already weak housing market because potential buyers of property in a flood plain were unable to close on their homes, she said. The reauthorization is "not perfect, but I support it because it will provide much-needed stability to homeowners and businesses, as it will avoid any lapses in coverage through 2016."
One in four Floridians is covered under the program, collectively paying $900 million in premiums per year, Ros-Lehtinen said. The program serves low-lying areas such as the Florida Keys, where there are no other affordable providers.
FEMA also imposes tighter restrictions on properties in the Keys, which includes prohibiting first-floor living spaces as well as utilities and further development in areas of No Name Key.

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