House Passes Bill to Reduce Flood Insurance Premiums

Earlier this week, the U.S. House of Representatives approved a bill to reduce flood insurance premium rates mandated by the Biggert-Waters Act enacted two years ago. H.R. 3370 would roll back the recent rate increases and prohibit increases on “grandfathered” policies issued for homes constructed before flood maps were adopted.

To make up for the projected revenue loss, H.R. 3370 would impose a $25 per year surcharge on every residential policy, and a $250 surcharge for commercial properties. The bill also calls on the Federal Emergency Management Agency (FEMA) to consider a cap of $2,500 on any annual residential policy. Proponents of the bill believe that the Senate may now adopt the House bill and forego a conference committee to resolve differences with the bill enacted last month by the Senate.

For additional information, please contact RCRC Regulatory Affairs Advocate Mary Pitto at 916.447.4806 or mpitto@rcrcnet.org.