WASHINGTON, D.C. – If you live in a flood prone area in Mississippi you will be glad to know that an effort to stop skyrocketing insurance rates, also known as the Homeowner Flood Insurance Affordability Act, passed the U.S. Senate Thursday.
The new act will delay the Biggert Waters Act of 2012 which aimed to overhaul the National Flood Insurance program, but at the same time would have raised the premiums of homeowners.
“The flood insurance program has come up with premiums that absolutely cannot be paid by property owners, it is just impossible. Things like a homeowner in Greenville, Mississippi going from premiums of $980 in flood insurance to $4,200 a year,” said Senator Roger Wicker.
This bill delays the flood insurance premiums hikes until FEMA’s flood mapping methodology is determined to be technically sound and an affordability study is complete.
“Hopefully after that we can make the program work, having it be a success not only for the property owners, but also for the taxpayers. These are not beach front property owner’s second homes, these are middle class families for the most part, facing the real possibility that their home values will plummet because there is no one to buy their homes. Not only the individuals are concerned, but also the communities, realtors, and local governments. ”
Wicker says he is confident that the U.S. House will pass the delay bill as well.