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PIA National Praises Passage of Flood Bill in House Committee

PIA National praised the House Financial Services Committee for passing the Flood Insurance Reform Act of 2011 (H.R. 1309). The committee voted unanimously to approve...
May 17, 2011

PIA National praised the House Financial Services Committee for passing the Flood Insurance Reform Act of 2011 (H.R. 1309). The committee voted unanimously to approve the bill on May 13, 2011. The vote was 54-0.

"The unanimous vote by the House Financial Services Committee to extend the National Flood Insurance Program (NFIP) for a full five years and enact key reforms to put it on a firm financial footing is good news for taxpayers, consumers and the real estate market," said PIA National Executive Vice President & CEO Leonard C. Brevik.

"This vote demonstrates that there is broad, bipartisan consensus that the NFIP is a vital component of America's economic prosperity that provides protection from flooding to homeowners and business owners," Brevik said. "PIA strongly supports H.R. 1309 we urge the full House and the Senate to pass it without delay."

As passed by the House FSC, H.R. 1309 phases out the program's rate subsidies, gradually raises all premiums to reflect actual costs, improves the accuracy of flood maps and allows more public input into the mapping process, and encourages private insurer and reinsurer participation in the market. The bill also adds two new coverage options, ties policy limits to inflation, and sets higher deductibles for rate-subsidized properties.

The committee rejected an amendment that would have blocked the NFIP from offering two new optional coverages: additional living expenses (ALE) up to $5,000 aggregate and business interruption (BI) coverage up to $20,000 per property.

See PIA EVP Len Brevik's comments: Industry Reacts to NFIP Legislation (PIA quoted) (National Underwriter 5/13/11)

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