The U.S. Senate passed a bill on Jan. 30 that would delay the implementation of dramatic flood insurance premium increases for home and business owners in flood-prone areas.

The Homeowner Flood Insurance Affordability Act passed with strong bipartisan support. U.S. Sen. Elizabeth Warren personally notified the MMA immediately upon its passage, recognizing its significance to many Massachusetts communities.

A recent spike in flood insurance premiums, resulting from the federal Biggert-Waters Act of 2012, created significant alarm in cities and towns across Massachusetts. The Biggert-Waters law eliminated flood insurance subsidies and required the Federal Emergency Management Agency to redraw flood plain maps, resulting in more homes and businesses being included in newly enlarged high-risk flood zones that require flood insurance.

The Biggert-Waters Act began to take effect on Jan. 1, 2013, and its implementation schedule continues over the next several years. The act required FEMA to complete an affordability study prior to imposing the new rates, but the study was not done.

The bill passed by the Senate would delay rate increases by up to four years.

It would:

• Allow homeowners to pass flood insurance policies on to new purchasers of their homes at the same below-market rate

• Roll back rates on new homeowners who have recently seen sharp premium increases

• Require FEMA to create a plan to make premiums affordable and re-evaluate the accuracy of its newly drawn flood plain maps

Sen. Warren expressed optimism about the bill’s chances in the House, where it has been sent for consideration. The Massachusetts delegation has been unified in efforts to pass legislation mitigating the financial impact of the Biggert-Waters Act.

Warren had discussed the Senate bill, which she co-sponsored, at the MMA Annual Meeting on Jan. 25.

 Grimm-Waters-Richmond Homeowner Flood Insurance Affordability Act (48.54 kB)

+
+