NU Online News Service, Dec. 2, 3:43 p.m.EST

Two Democratic senators Tuesday introduced legislation in thecurrent lame-duck session that would delay for five years a mandatethat homeowners included in new flood zones buy "market-based"insurance policies.

According to Sens. Charles Schumer, D-N.Y. and Richard Durbin,D-Ill., the delay will give homeowners in the affecteddistricts–such as on Long Island and in East St. Louis, Ill.–theopportunity to challenge the new flood maps.

The legislation would also make low-cost preferred risk policiesavailable to any homeowner who wishes to participate in theNational Flood Insurance Program.

Earlier in the year, Sen. Durbin won a delay for two years incharging new market rates for residents of East St. Louis from theFederal Emergency Management Agency.

Jimi Grande, senior vice president of federal and politicalaffairs for the National Association of Mutual Insurance Companies(NAMIC), assailed the legislation, suggesting that it is"short-sighted."

He said, "Rather than pursuing a piecemeal approach, we at NAMIChave called on Congress to address the significant structural flawsin the National Flood Insurance Program, one of which is itsreliance on outdated floodplain maps.

"We would urge members of Congress to carefully consider thepotential costs of this legislation," Mr. Grande said.

He added that while delaying the implementation of the mandatorypurchase requirement may save homeowners some money over the nextfew years, without flood coverage their costs could end up beingmuch higher.

Mr. Grande said the new legislation introduced is "a shortsighted political reaction that ignores important policy andpractical implications. It would do nothing to help protect thosehomeowners from flood-related losses, while adding to the burden onthe NFIP and the taxpayers.

Ben McKay, senior vice president of federal government relationsat PCI, said, "While PCI, in these economic times, certainlyunderstands the desire to soften the requirement and the cost ofpurchasing this important coverage, there are several problems withthe proposal from Senators Schumer and Durbin.

"The NFIP faces over $18 billion in debt and this new proposalstands to further increase the need for government disaster aidfollowing a tragic event. The bill would make both our nation'seconomy and communities even more financially vulnerable todevastating floods.

"The NFIP is in need of comprehensive reform. While theirproposal has many negative unintended consequences, we agree withSenators Schumer and Durbin that the flood map program needs to befixed. However, calls for the privatization of the flood programcould require a massive rate increase which is unfair when thegovernment is still struggling to provide accurate flood maps."

Sen. Schumer said he introduced the bill because he is "highlycritical" of FEMA flood-mapping techniques and has been pushing theagency "to go back to the drawing board to devise a flood map planthat reflects the on-the-ground realities of communities now beingimpacted by new flood elevation requirements."

Under the NFIP reform legislation passed in 2003, homeowners wholive in an area designated as a flood zone are federally mandatedto purchase flood insurance.

These policies can cost up to $2,000 per year on Long Island,Sen. Schumer said.

Sen. Schumer said his bill would also phase in the amount offlood insurance required over an additional five years followingthe end of the five-year moratorium.

NFIP reauthorization legislation, H.R. 5114, the "FloodInsurance Reform and Priorities Act of 2010," was passed by theHouse July 15, but it has little support in the Senate.