RELEASE: Palazzo Statement on New Flood Insurance Rates
Says new rates going into effect on May 1st will bring relief to many
Washington, DC – Congressman Steven Palazzo, (MS-4), released the following statement today regarding the implementation of new flood insurance rates as a result of the Homeowners Flood Insurance Affordability Act of 2014 (HFIAA).
“FEMA can’t implement these new rates quickly enough. Their leadership has pledged to make new rate structures and reimbursements a priority in the coming weeks, and I plan to hold them to that. I encourage Mississippians with flood insurance policies to check with their local agents to see how these changes could affect them.”
Palazzo worked with the Home Protection Caucus and House leaders for more than a year to produce the Homeowner Flood Insurance Affordability Act. It was passed by the Senate and the House with overwhelming bipartisan support, and it was signed into law on March 21st, 2014.
In response to Palazzo’s questions at a recent House Homeland Security Committee hearing, FEMA Administrator Craig Fugate indicated that the agency is also working to distribute reimbursements to those who overpaid before passage of HFIAA.
The changes FEMA announced for May 1st will start to restore subsidized rates for those who previously faced increases because of a home sale, purchase of a new policy, or the lapse of an existing policy.
Prior to the passage of HFIAA, those who met these criteria faced substantial, overnight increases based on full-risk rates. Individuals should see the new rates reflected in premiums when their policies come up for renewal. Those with grandfathered policies, many of whom built back after Hurricanes Katrina and Isaac, should be able to keep their existing rates as a result of HFIAA.