WASHINGTON (April 6, 2011) Legislation to move the National Flood Insurance Program closer to financial stability took one step closer to becoming law with passage by a House Financial Services Subcommittee, the National Association of Mutual Insurance Companies (NAMIC) said today.
“Today’s vote was an important first step for reforming the National Flood Insurance Program,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “But there’s still a long way to go. We urge the full Financial Services Committee to take up HR 1309 swiftly.”
H.R. 1309, the Flood Insurance Reform Act, was introduced by Rep. Judy Biggert, R-Ill., who chairs the Subcommittee on Insurance, Housing and Community Opportunity. The bill would phase-in more accurate risk-based pricing for flood insurance, and establish a Technical Mapping Advisory Council to address the concerns of members of Congress and their constituents, many of whom find themselves living in a floodplain under the new maps and dispute the findings.
“For the NFIP to survive, the prices for flood insurance must reflect the actual costs of flood risk for a property,” Grande said. “HR 1309 will provide that transparency. In addition, the Technical Mapping Advisory Council will give communities a voice in the flood mapping process, fostering a better understanding of what flood maps represent and how they are made.”
The bill also calls for mitigation incentives for local enforcement of Building Codes, an issue NAMIC has long advocated for to Congress. “The best time to reduce flood losses is before a flood occurs,” said Grande. “By creating an incentive for the adoption and enforcement of stronger building codes, HR 1309 would produce significant savings in post disaster aid and save homes, businesses, and lives.”
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Posted: Wednesday, April 06, 2011 4:58:06 PM.
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