Rates under the National Flood Insurance Program were set to increase, but might be delayed by a year. The Flood Insurance Rate Increase Suspension Act created by U.S. Rep. David Jolly and U.S. Rep. Gus Bilirakis, will stop the rise of flood insurance premiums and fees, which was expected to be in the region of 9% across the industry. Jolly says: “The goal of previous reform measures was to create a market for more competitive rates, and in fact lower rates, based on improved mapping and improved data”.
He goes on to say, “Unfortunately the FEMA re-mapping process remains ongoing and government data on properties is still not fully being provided to private insurers who could write policies to compete with the National Flood Insurance Program.”
Jolly is trying to use the power he has in the U.S. House Appropriations Committee to postpone changes so that a fair solution can be achieved. The goal is affordable flood insurance, and the reality is that a spike in rates could cripple the economy. This would have a negative impact for many families in Florida. The bill representing the postponement was sent last week and has not yet been decided upon.