Bill Revising Some Flood Risks Due For Vote

WASHINGTON–Legislation that would require some homeowners whose houses are valued at more than $600,000 to pay actuarially based rates for government flood insurance is set for a vote on the House floor tomorrow.

The legislation (H.R. 3959) is aimed specifically at homes that predate the flood insurance rate map, or FIRM, and are purchased for more than $600,000 after the bill is signed into law. Because they predate the federal flood maps, which took effect in 1974, such properties have come with lower rates for their flood coverage, which critics have said amounts to a subsidy.

The legislation was introduced by House Financial Services Committee Chairman Barney Frank, D-Mass., and committee member Scott Garrett, R-N.J., on Oct. 24 and was approved by the committee a week later.

H.R. 3959 is going to the floor under the suspension calendar, which means it will be debated for 40 minutes, cannot be amended, and will require two-thirds of the vote for passage. Legislation is typically moved on the suspension calendar if it is not expected to have any opposition.

Among the supporters for the bill is the Property and Casualty Insurers Association of America. Paul Kangas, PCI's director of federal government relations, said at its introduction that the trade group “has long supported reforms that would shore up the National Flood Insurance Program's solvency, and we believe that H.R. 3959 will help get us to that goal.”

By helping to reduce and eventually eliminate the subsidy for pre-FIRM properties, Mr. Kangas noted, the legislation will help create a more solid foundation for the National Flood Insurance Program.

“This is a good bill that will help stabilize the flood program and better serve both policyholders and taxpayers across America,” he said.