Louisiana Lawmakers Push to Delay Flood Insurance Premium Hikes
AÂ flood insuranceÂ reform bill that is set to increase premiums for thousands of policyholders around the country may be delayed for residents in Louisiana, if lawmakers in the state have their way. With bills already proposed, Louisiana House and Senate members push to extendÂ affordableÂ insuranceÂ for a few months, and in some cases, even years.
Lawmakers Fight Increase in Louisiana Flood Insurance Costs
Members of the House of Representatives in Louisiana are fighting a massive increase in flood insurance rates that has already hit some parts of the country and is set to impact Louisiana in the near future.
Rep. Cedric Richmond (D-New Orleans), the lead sponsor of the bill, has been joined by every member of the Louisiana delegation with the exception of Rep. John Fleming (R-Minden) to delay 2012 legislation that would phase out discounts flood insurance policyholders have received for decades, essentially causing premium hikes as high as 25 percent.
A similar bill with an identical aim of legislation was introduced earlier this week by Senate member Mary Landrieu (D-La.). Both bills address the fact that, if the 2012 bill is allowed to take effect, tens of thousands of homeowners insurance policyholders in the state will experience substantial insurance hikes.
House and Senate Plans to Maintain Affordable Insurance Differ
Both the Louisiana Senate and House bills hope to keep costs low for state residents a while longer; however, those bills propose to do so in different ways.
The Landrieu bill would delay implementation of the 2012 flood insurance law until six months after FEMA conducts a mandatory affordability study.
The House bill, on the other hand, offers language that calls for a five-year delay of a provision that ends subsidized flood insurance premiums after the sale of a home, as well as the delay for three years of a provision that directs FEMA to increase rates over a five-year-period.
The idea behind both bills is to ensure homeowners in the state are not overwhelmed by a sudden increase in home-related costs.
“The Flood Insurance Implementation Reform Act delays certain provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 to make sure flood insurance rates don’t burden homeowners,” Richmond shared in a statement.
(Photo:Â Image:Â james.thompson)