Washington–Revised flood insurance reform legislation, including language allowing a gradual increase in rates for vacation home coverage, is set for action Wednesday by the House Financial Services Committee.
Included in the bill is a provision that gives the Federal Emergency Management Agency, which administers the National Flood Insurance Program, the authority to increase the annual limitation on rate increases from 10 percent to 15 percent annually.
A person familiar with the drafting process, who asked for anonymity, said that provision is designed to reduce the subsidy the program provides to consumers and deal more realistically with the debt burden imposed by recent catastrophes on the NFIP.
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