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Statement by the National Association of Professional Insurance Agents on Senate Passage of H.R. 3370

PIA is pleased that H.R. 3370 included mitigation provisions that can lead to sustainable rate relief...
March 13, 2014

PIA is pleased that the Homeowner Flood Insurance Affordability Act of 2013 (H.R. 3370) included mitigation provisions that can lead to sustainable rate relief. We are heartened that the bill included provisions we advocated, such as accounting for flood mitigation activities in estimates of premium rates and instructing the Federal Emergency Management Agency (FEMA) to issue guidelines for property owners that provide alternative methods of mitigation, other than building elevation, to reduce flood risk to residential buildings. We are also pleased with the inclusion of a provision to study the potential establishment of catastrophe savings accounts.

This bill provides needed relief for some policyholders who were facing drastic rate increases. It does so by delaying some tough decisions, pending a study on affordability. PIA still supports the principle of charging risk-based rates for flood insurance, in a manner that takes affordability into account. PIA strongly supports the National Flood Insurance Program (NFIP) because it offers critical support to those affected by floods and provides the coverage that the private market is currently unable to insure.