The House passed a bipartisan flood insurance effort that would lay the groundwork for the creation of private flood insurance markets.
The Flood Insurance Market Parity and Modernization Act, sponsored by Reps. Dennis Ross (R-Fla.) and Kathy Castor (D-Fla.), was included as part of a bill to reauthorize the Federal Aviation Administration. Although that reauthorization would eventually pass both chambers, the Senate struck out the Flood Insurance Market Parity and Modernization Act before passing the bill.
Among supporters of the House bill was the Mortgage Bankers Association.
“MBA commends the House of Representatives for passing bipartisan legislation that includes language aimed at increasing flood insurance options for consumers,” MBA President and CEO David Stevens stated. “MBA looks forward to continuing to work with all policymakers to protect consumers by providing them with the choice of government or private flood insurance coverage.”
The House vote was 264-155 in favor of the legislation, coming after passage by a 419-0 measure last year. The bill clarifies how non-government flood insurance policies can satisfy the federal flood insurance mandate for properties located in high-risk areas.
“The recent major flood events across the country have provided a much-needed sense of urgency to our efforts to provide consumers with private sector flood insurance options,” Ross said. “Currently, many homeowners in Florida and across the country face unaffordable flood insurance premiums and a lack of coverage options, largely due to federal regulatory barriers that give the National Flood Insurance Program a harmful monopoly over the marketplace.
“As with other forms of insurance, the private sector, in conjunction with state insurance commissioners, can provide the innovation and flexibility that will help homeowners better manage and understand their risk, while also reducing the number of uninsured homes and incentivizing investments in flood mitigation and resiliency efforts. It would be irresponsible to delay passage of this bipartisan reform any longer.”
House Financial Services Committee Chairman Jeb Hensarling (R-Texas) backed the effort during debate on the House floor before passage of the bill.
“We have all seen the terrible tragedy and suffering from Harvey, Irma, and Maria,” he said. “We have seen the shattered homes, and we have seen the shattered lives. I have been to Houston and my native Texas to visit with a number of the victims.
“It is very simple. (The bill) simply clarifies congressional intent that people ought to have more options. … So let’s take one important step today to help the victims of Harvey, Irma, and Maria as they begin to rebuild their homes, to have more flood insurance options, more affordable insurance options.”