Mr. President, I rise today on behalf of myself and Senators Lott and Cochran to introduce legislation that will help make flood insurance more affordable for working families across the country.…
Mr. President, I rise today on behalf of myself and Senators Lott and Cochran to introduce legislation that will help make flood insurance more affordable for working families across the country.
This bill makes a substantial change to the National Flood Insurance Program by reducing flood insurance premiums for those living near recently decertified levees.
This is critical in California and the Gulf States, where several levees no longer meet national certification standards.
Here is how the bill works: If a national flood map update results in the decertification of a levee, those living nearby will be required to purchase flood insurance. This legislation makes those now required to pay flood insurance eligible for a 50 percent discount on premiums for 5 years. Levee decertification will force some homeowners to pay upwards of $1,000 per year for new flood insurance policies from the National Flood Insurance Program; according to FEMA premium estimates for high-risk residential areas.
This bill will save most families in a newly zoned high-risk residential area more than $500 each year, or roughly $40 each month.
The goal of the 5-year reprieve is to give the responsible agencies time to bring the levees up to standard.
When the levees are strong again, the homeowners will no longer be required to purchase flood insurance. The financial burden would be lifted.
This grace period helps those who need it most and softens the harsh and expensive consequences that accompany FEMA's Map Modification process.
Additionally, the 5-year limit allows this legislation to accomplish these objectives in a manner that is fiscally responsible.
Our colleagues in the House recently passed legislation H.R. 3121, that seeks to ensure the continued viability of the National Flood Insurance Program.
My colleague in the House of Representatives, Congressman Dennis Cardoza, authored an amendment similar to this legislation, which passed by voice vote and is now included in the House's proposed changes.
The House bill encourages broader participation, increases financial accountability, and eliminates unnecessary rate subsidies.
Additionally, the bill makes the updating and modernization of flood maps a priority, and requires a thorough review of the Nation's flood protection systems.
Under the new requirements, FEMA will work in conjunction with the Army Corps of Engineers and local communities to inventory their flood control systems and reassess their levels of protection.
However, as FEMA remaps and reexamines flood threats, many households will find that they are no longer as safe as they thought.
In California alone there are more than 136 communities that contain at least one levee that will be impacted by the deaccreditation process.
These communities contain levees that will be, or may have already been, remapped and decertified for not providing protection from the 1 percent annual chance flood.
Many of the families in these impacted communities have lived in their homes for years, and believed that the levees in their backyards protected them from the threat of dangerous and costly flooding.
As a result of the changing risk, homeowners who were previously exempt from mandatory flood insurance may now be required to purchase flood insurance.
That is why I believe this bill is necessary. The Homeowners Flood Insurance Protection Act lightens this burden.
For nearly 40 years, the National Flood Insurance Program has been instrumental in making flood insurance readily available to all Americans: Communities have partnered with the Federal Government to adopt and enforce floodplain management and, in turn, receive federally-backed insurance policies; and through the development of effective floodplain management strategies, millions of families have been protected from flooding and saved from the devastating costs associated with flood damage.
But today, the program is in danger.
After the record-breaking losses of nearly $20 billion suffered as a result of Hurricanes Katrina and Rita in 2005, it is clear that the program needs to be updated.
This expansive project will allow communities to formulate responsible floodplain development plans and prepare for catastrophic flooding. The project will also ensure that the National Flood Insurance Program charges fair rates for their flood insurance premiums.
Now, I support the National Flood Insurance program and recognize the importance of mandatory purchase requirements.
The problem is that homeowners who have paid their taxes and helped to pay for the upkeep of these levees, will now find themselves forced to pay an additional insurance premium because of a failing levee.
Many of these individuals in my State and across the country are low- income earners and this increasing burden threatens to break the bank.
Coupled with rising energy, health care and home mortgage costs, the unexpected additional expense of flood insurance may be too much for some families.
That is why we need to offer this assistance.
We must act soon to overhaul our Nation's flood insurance program.
However, it is also our responsibility to mitigate the impact of the levee decertification process on thousands of unsuspecting families across the country.
Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.
