Pennsylvania insurance commissioner Teresa Miller applauded the US House of Representatives for its unanimous passage of the Flood Insurance Market Parity and Modernization Act, H.R. 2901, saying it was a major step towards helping homeowners facing rising flood insurance premiums.
"This proposal ties in perfectly with Gov. Wolf's consumer protection agenda, and with work the Insurance Department has been doing the past several months, by creating a one-stop shop for homeowners to get information on flood insurance, including the increasing availability of private market coverage, which can often be substantially less costly than the National Flood Insurance Program policies managed by the federal government," Commissioner Miller said.
Mortgages backed by the federal government in flood-prone areas require flood insurance cover. Previously, almost all flood insurance was sold vie the government-owned National Flood Insurance Program (NFIP). Many homeowners with NFIP insurance have faced several premium increases, making the flood insurance market enticing for private insurers.
The recently-approved legislation would define as acceptable a policy issued by a private insurer that is licensed, admitted, or otherwise approved in the state in which the insured property is located. A policy from a non-admitted insurer, also known as a surplus lines policy, would also be recognized. A large amount of private coverage now sold in Pennsylvania is through the surplus lines market making it important to include surplus lines.