Reed Seeks Relief from Skyrocketing Flood Insurance Costs for Taxpayers and Business Owners
Rep. Tom Reed says the House is likely to act this week on legislation to bring relief to homeowners from skyrocketing flood insurance costs. Reed met last week with homeowners and local business and elected officials to hear their concerns on flood insurance premium increases, looking for their suggestions on how to alleviate cost spikes.
“We’re advocating to make sure reforms are integrated in a fair way that protects hardworking taxpayers from a sharp, immediate rate increase,” Reed said. “What we’re hearing from homeowners is that the flood insurance program needs to be put on a glide path so reforms don’t suddenly gouge the pockets of taxpayers.”
Originally created in 1968, the National Flood Insurance Program (NFIP) underwent reforms in 2012 known as the Biggert-Waters Reform Act. Reed says the 2012 reforms were needed as the program lacked solvency and was pushing the burden onto taxpayers.
Reed cited a local business looking to expand its operation but was nearly derailed by the flood insurance premium being increased five times the original rate, from about $7,000 to about $35,000.
“Thankfully we were able to keep the business and the 40 jobs it supports here in the district but this is the kind of issue we’re seeing businesses run into,” Reed continued. “Rate spikes have huge consequences on the job climate in the district. It’s a real problem, impacting real people in the district. The next step is taking feedback from the district so that homeowners see affordable insurance at fair rates that allow them to care for their home and their financial security. That’s what the bill being considered this week is about.”
More on Reed’s flood insurance roundtable here.