Flood Insurance Legislation Will Slow Rising Premiums

Press Release

Today Congressman Kevin Cramer announced the passage of bipartisan flood insurance reform in the House of Representatives. The Homeowner Flood Insurance Affordability Act of 2014 slows the unaffordable rise of insurance premiums while moving towards a fiscally solvent national flood insurance program. The legislation also instructs FEMA to continue extending exemptions for flood-proofed basements.

"Rather than kicking the can down the road four years, the House bill provides citizens with immediate relief from the price shock of sharp flood insurance premium increases under Biggert-Waters, and begins dealing with the financial sustainability of the program by allowing incremental increases while FEMA studies the situation. Like the Senate, our bill includes the common sense flood proof basement waiver," said Cramer.

The bill retroactively repeals portions of the Biggert-Waters Act, allows communities to be reimbursed for successful challenges to FEMA maps, and expands the scope of the affordability study already required to be conducted by FEMA. Until a true risk premium is reached, an annual $25 surcharge for primary residences and $250 for non-residential structures and secondary homes will be assessed. Total annual increases for any property may not be increased by more than 18% a year. In addition, the bill allows for monthly premium payments, optional high-deductible policies, removes the home sale/new policy rate increase trigger, requires FEMA to recognize adequate progress made on construction of flood protection systems, and authorizes the exclusion of detached structures from the mandatory purchase requirement.

In the evening on June 5, 2013, Cramer worked closely with colleagues from the Gulf Coast, New Jersey, and other regions affected by flooding to successfully pass an amendment to the Homeland Security appropriations bill to prevent these premium increases from going into effect. The bill passed the House on a bipartisan vote the next day and was included in the Consolidated Appropriations Act of 2014 signed into law on January 17, 2014.

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