Flood Insurance Market Parity and Modernization Act Will Encourage the Development of a Private Flood Insurance Marketplace
WASHINGTON, D.C. — SmarterSafer.org, a national coalition of taxpayer advocates, environmental groups, insurance interests, housing organizations and mitigation advocates, applauded the House today for passing the Flood Insurance Market Parity and Modernization Act (H.R. 2901) with overwhelming bipartisan support. This bill will help open the flood insurance marketplace to private insurers by easing regulations and allowing private insurance to fulfill mandatory purchase requirements. As a result, consumers will have more options and the burden on the National Flood Insurance Program (NFIP) will be reduced.
In a statement, SmarterSafer.org said, “Our nation’s disaster policies urgently need reform, and this bill is an excellent step in the right direction. More competition in the flood insurance marketplace will give consumers access to better coverage and lower rates. For too long, outdated regulations have forced consumers to rely on the NFIP, saddling the program with a $23 billion debt load. We thank the entire House for passing this critical, bipartisan legislation, and we urge the Senate to build on this momentum by also passing this bill.”
SmarterSafer.org is a national coalition that is made up of a diverse chorus of voices united in favor of environmentally responsible, fiscally sound approaches to natural catastrophe policy that promote public safety. The coalition believes that the Federal government has a role in encouraging and helping homeowners to undertake mitigation efforts to safeguard their homes against natural disasters. At the same time, the coalition opposes measures that put people’s lives at risk at the expense of taxpayers. Measures such as subsidizing artificially low rates for homeowners’ insurance policies help to encourage construction in environmentally sensitive and unsafe areas. The coalition is working to ensure that Congress does not incentivize people to live in harm’s way in places prone to hurricanes and floods.
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