President Obama Signs Flood Insurance Reform Legislation

Press Release

Today President Barack Obama signed bipartisan flood insurance reform legislation which Congressman Kevin Cramer helped introduce. 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, and instructs FEMA to continue extending exemptions for flood-proofed basements.

"I am pleased we now have the President's signature on these important changes to flood insurance which will provide more fair and understandable premiums for Fargo, Minot, Bismarck, and other communities in North Dakota. This bill provides citizens with immediate relief from the price shock of sharp flood insurance premium increases while dealing with the financial sustainability of the program," 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.

The legislation passed the House of Representatives on March 4, and the Senate on March 13.

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