Senate delays key flood insurance vote

Producers waiting on the results of a Senate vote to delay flood insurance hikes will have to wait a little longer, as bill sponsors say they are too enmeshed in the unemployment insurance debate.

Catastrophe & Flood

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The expected vote to effectively delay sharp increases in flood insurance premiums by four years won’t take place today, Senate sponsors of the legislation confirmed.

According to Louisiana Sen. Mary Landrieu, the Senate is still dealing with the politically divisive topic of extending unemployment benefits and won’t get to the flood insurance issue until next week.

Landrieu reportedly told USA Today that “next week is more realistic” for the vote, and that Senate Majority Leader Harry Reid had vowed to get the bill to the floor.

If passed, the Senate bill would postpone the rate increases until FEMA completes an affordability study on the changes and solves any issues involving premiums considered to be unaffordable. The bill would not block rate increases for most business properties, second homes or repeat flood insurance properties.

Producers in the South and Northeast say many of their clients are abandoning their homes or holding off on home purchases in order to avoid the premium hikes of 300%, 500% and even 1000%.

Meanwhile, state insurance commissioners like Mississippi’s Mike Chaney are attempting to halt the changes through a lawsuit against FEMA. In Florida, state representatives are planning legislation that would allow more private insurers to offer flood insurance in hopes that expanding the market will drive down prices.

 

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