Flood Insurance Agreement Compromise

On Friday, House Majority Whip Steve Scalise (R-LA) and House Financial Services Committee Chairman Jeb Hensarling (R-TX) announced they have negotiated an agreement for a long-term reauthorization of the National Flood Insurance Program, “being from Louisiana and Texas, we are all-too familiar with the devastating effects of floods and the havoc they wreak on communities. That’s why we agree on the importance of a long-term reauthorization of the National Flood Insurance Program that helps both policy holders and taxpayers. The bill we support will begin to make the flood insurance program more stable and sustainable for the people who count on it. We look forward to bringing this legislation to the House soon and urge our colleagues to support it.”

The agreement struck Friday appears to resolve some key sticking points on long-term reauthorization: the compromise would prevent policyholders whose homes flooded multiple times in the past from being booted from the program; homeowners would see their rates rise from their grandfathered rates only after filing two future claims; and rates would then rise 10 percent per year until hitting the current risk-rate, with a third claim seeing rates increase by 15 percent per year. Draft text should be available soon.

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