In a time when bipartisanship appears to be fleeting, both parties have unveiled legislation designed to delay the National Flood Insurance Program(NFIP) rate hikes mandated under the Biggert-Waters Flood Insurance Reform Act of 2012.
In May 2013, Senator Mary Landrieu, D-LA, introduced a Senate bill delaying the rate hikes. However, the legislation which has been unveiled and will soon be introduced, appears to be a coordinated effort on the part of members of both parties in both chambers. On key sponsor in the House is Congresswoman Maxine Waters, D-CA, of Biggert-Waters fame.
The rate hikes have been a politically sensitive subject for legislators as policy holders have paid premiums not necessarily commensurate with the risk of flooding. The proposed legislation will not apply to secondary and vacation homes. The rate hikes will only apply to those who meet certain qualifications.
Biggert-Waters was passed in response to the ever growing gap between claims paid by the NFIP and the premiums collected. Currently, the NFIP owes the U.S. Treasury close to $25 billion. While the rate hikes are designed to be more risk-based, there is a concern that they will adversely affect those who are least able to afford it and who have lived in higher risk areas for many years.