House Committee Passes Flood Insurance Extension, Reform Bill

As flood waters continued rising along the Mississippi River, a House committee yesterday unanimously approved bipartisan legislation to extend the federal flood insurance program for five years and introduce financial reforms of the debt-ridden program. The legislation (HR 1309) approved by the House Financial Services Committee on a 54-0 vote authorizes the National Flood Insurance Program (NFIP) until 2016 and phases out the program’s rate subsidies, gradually raises all premiums to reflect actual costs, improves the accuracy of flood maps and allows more public input into the mapping process, and encourages private insurer and reinsurer participation in the market.