Schumer Announces Support for Amendment to Stave Off Massive Flood Insurance Premium Increases for New Yorkers Impacted by Superstorm Sandy

Press Release

U.S. Senator Charles E. Schumer today announced support for an amendment to the Water Resources Development Act (WRDA) that would stave off looming flood insurance premium increases for communities set to receive updated flood maps. The amendment, which was filed by U.S. Senator Mary Landreiu, will stop premium rate increases for National Flood Insurance Program (NFIP) coverage until six-months after the Federal Emergency Management Agency (FEMA) conducts an "affordability study" on the impact of rate changes. The study would specifically investigate whether homeowners could afford the rate changes, and what can be done to make the program more affordable. The data provided by the study and the six month window will give Congress the time and information to make potential changes to the NFIP. Right now, premium increases could go into effect before the affordability study is even completed.

"I will strongly support this amendment that staves off massive, looming flood insurance hikes for homeowners, many of whom are dedicating every available penny to rebuilding. I discussed this issue with Senator Landreiu, the amendment's sponsor, yesterday, and told her she could count not only on my vote, but my full assistance in the effort to pass it," said Senator Schumer.

Currently, New York City is in the midst of having its flood maps revised and updated by FEMA, which will require many new homeowners to acquire or strengthen their flood insurance. The Biggert-Waters Flood Insurance Reform Act includes provisions that will lead to an increase in the premium rates for NFIP coverage and requires that FEMA conduct an affordability study of NFIP premiums and the effects of increased premiums on low-income homeowners as well as ways to increase affordability through targeted assistance. Although the study was due on April 6th, it has yet to be released by FEMA. In fact, the study has not yet commenced. Under current law, premiums could go up before the affordability study is completed, which is at odds with congressional intent.

Schumer today announced support for an amendment to WRDA that would roll back recent flood insurance rate increases and freeze future rate increases for certain individuals that are required under Biggert-Waters until six-months after FEMA delivers the affordability study to Congress. Specifically, the amendment will help homeowners whose rates were increased, or are proposed to be increased, as a result of map revisions adopted following the passage of Biggert-Waters. New York's flood maps are in the process of being revised, and it is expected that many New Yorkers -- including many in the areas most impacted by Sandy -- will see their premiums rise under the new maps. Schumer explained that this amendment will help many New York homeowners, including many impacted by Superstorm Sandy, stave off massive flood insurance premium increases as a result of those map revisions until FEMA has studied the impact on affordability of those rate increases and ways to increase affordability

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