REPRESENTATIVE RASCHEIN FILES HOUSE MEMORIAL TO URGE CONGRESSIONAL ACTION ON FLOOD INSURANCE

Tallahassee, FL – Representative Raschein (R-Key Largo) and Representative Manny Diaz, Jr. (R-Miami) filed House Memorial 583 this week to urge Congress to delay any rate increases resulting from the passage of the Biggert-Waters Flood Insurance Reform Act until the congressionally mandated affordability study can be completed by FEMA. The memorial also requests that Congress eliminate any provisions that require a property owner insured through the National Flood Insurance Program (NFIP) to immediately pay full-risk rates.

The Biggert-Waters Flood Insurance Reform Act was signed into law in July of 2012 and was designed to reduce the federal flood insurance program’s $ 24 billion deficit through increased rates.  In Florida, the changes have caused dramatic increases in flood premiums, with pending home sales falling through and current homeowners losing equity in their homes due to decreasing home values. Efforts to correct this issue at the federal level are slowly progressing but residents of Monroe County are concerned that comprehensive, long-term reform cannot come soon enough.

“I am proud to sponsor this memorial on behalf of the many individuals, businesses and local governments who have reached out to me with their flood insurance horror stories”, Representative Raschein said. “The Biggert-Waters Act has had devastating effects for Florida – a state that has historically paid $ 4 into the National Flood Insurance Program for every $ 1 they received back. With this memorial, I hope we can show our congressional counterparts where the Florida House stands on this issue and encourage them to stand with us for meaningful reform.”

At the state level, Representative Raschein has signed on as a co-sponsor to HB581, a bill filed by Representative Ahern that would streamline the process for approving private market insurers to write flood policies in Florida. The bill would also give consumers the option of covering either the outstanding balance of their mortgages, the replacement cost of their property or the actual cash value of their property, all of which could contribute to lower rates.