Flood Insurance Reform Bill to Make Flood Insurance More Affordable for West Virginians

BECKLEY, W.VA -U.S. Rep. Nick Rahall (W.Va.) announced that the Flood Insurance Reform Priorities Act (H.R. 5114), which passed the House this week, will make flood insurance premiums more affordable for West Virginians by creating an installment payment program and delaying mandatory flood insurance for homeowners in newly classified flood zones.

"I have supported this bill because flood insurance affordability is a key concern for West Virginians who live in flood zones, and this bill helps to address this serious concern," said Rahall. "This legislation takes a step in the right direction to assist homeowners who would like to purchase flood insurance as part of the National Flood Insurance Program (NFIP) but were unable to do so as a result of the high lump sum premiums that were required to purchase flood insurance. This legislation simply allows monthly installments, like fire insurance, making flood insurance costs more manageable so that people can put their lives back together following a flooding disaster."

H.R. 5114, which passed the House of Representatives 329 to 90, takes significant steps to improve NFIP and ensure its continued viability over the longer term, encouraging broader participation, increasing financial accountability, eliminating those premium subsidies that are unnecessary and updating the flood insurance program to meet the needs of the 21st century.

More than five million homes and businesses nationwide currently rely on the NFIP, which is the primary source of reliable and affordable flood insurance coverage. This reform bill reforms the struggling NFIP by providing families with greater payment flexibility and options, allowing them to pay for flood insurance in installments, raising maximum coverage limits for the first time since 1994, creating the office of the Flood Insurance Advocate to protect and assist policyholders and delaying the mandatory requirement to purchase insurance for five years.

This bill is supported by numerous organizations, including the National Association of Realtors, the National Association of Homebuilders, the American Insurance Association, the Property Casualty Insurers Association, and the Independent Insurance Agents and Brokers of America.

"West Virginians are no strangers to the devastating impacts of severe flooding--and many West Virginians would like to have the option to purchase flood insurance to financially protect their homes and businesses in case of a disaster; but we must make those insurance payments affordable, right now protection is simply not an option for many people in our state," said Rahall. "A payment plan, like the one proposed in this bill, is one solution to get more coverage to more people."

This legislation now moves to the U.S. Senate for further action.