Flood Insurance Compromise Bill

Two years ago, Congress passed legislation to reform the cash strapped flood insurance program. The result shocked thousands of homeowners across the country who found themselves faced with skyrocketing flood premiums. Those homeowners currently benefit from below market rates that are subsidized by other policyholders.  The 2012 legislation aimed to wean those home owners off subsidizes and required updated FEMA Flood maps. It was an effort to move the Flood Insurance Program out of the red.

The bill will preserve those rates and allow homeowners to pass the lower rates onto people who purchase the property. Another provision sets a property rate cap that will keep year over year rate increase to no more than 18 percent. FEMA maps are now required to be accurate and reliable. There is also funding to reimburse individuals and communities that successfully appeal their FEMA Flood map.

President Obama is expected to sign the bill into law despite earlier objections to delaying the 2012 legislation.