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Bill Delaying Flood Insurance Rate Hikes Passes Senate

Bill Delaying Flood Insurance Rate Hikes Passes Senate

The Senate has passed a bill to delay premium hikes for years on hundreds of thousands of homeowners who buy flood insurance from the federal government.

The 67-32 vote reflects widespread concern about changes enacted two years ago to shore up the program's finances.

The changes are producing sky-high insurance rates that are unaffordable for many homeowners in flood-prone areas whose insurance has historically been subsidized by the government and other policyholders.

The bill was muscled through the Senate after angry constituents and the real estate and home builder lobbies inundated lawmakers with complaints.

The measure faces opposition in the House, which must approve a companion bill.  If approved there, a conference committee would have to iron out any differences.  No date for House debate has yet been set.

Opponents of the bill say it unravels long-sought reforms of the flood insurance program, which has required numerous taxpayer bailouts and owes $24 billion to the Treasury Department as a result.

“Though this is just the first step in a lengthy process, it is a major step in the right direction for Louisiana citizens facing exponential increases in flood insurance premiums,” said Pat Brister, St. Tammany Parish President.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

 

 

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