Another Congressional Push for Flood Reform

The latest to “reform” the National Flood Insurance Program (NFIP) comes from Florida Sen. Rick Scott and stablemate, Florida Sen. Ashley Moody. They want to give tax relief for those who have to pay flood insurance premiums whether those payments are made to the NFIP or to a private insurer.

As most of you know, the NFIP is a mess. It’s overseen by the Federal Emergency Management Agency (FEMA). A few years ago FEMA reformed the NFIP with the very controversial Risk Rating 2.0. Basically, it set up a reforms to eventually make rates actuarily sound.

In some areas, the increases caused some property owners consternation as the rates were more, than some say, they can afford. Politicians from flood prone states like Louisiana and Florida, have continually submitted unsuccessful legislation to water down Risk Rating 2.0.

Scott and Moody want to fix that with The Flood Insurance Relief Act.

It’s part of Scott’s overall flood relief push that includes a bill to require FEMA to make detailed historic claims made in an area available to everyone, and policy and flood risk data, available to people and that will make the information easily accessible without risk of compromising private information.

Scott also wants people to be able to shop for flood insurance. Under his bill, a home or business owner can leave the NFIP and not be financially penalized if they choose to return. Under the bill they can also put a tax-free flood savings account into play for home mitigation and disaster recovery expenses.

"Families shouldn’t have to choose between protecting their homes and putting food on the table,” Scott said. “I’ve been working on several bills to fix the broken NFIP system and encourage private-sector participation to allow for a more robust, affordable flood insurance market, but we must do more to help families ASAP.”

A companion bill has been introduced in the House by Florida Rep. Byron Donalds.

Source link: The Center Square — https://bit.ly/40TggZ9