The United States House of Representatives passed H.R. 3959 (the “Bill”) on January 23, 2008, in an attempt to improve the actuarial soundness of the National Flood Insurance Program (“NFIP”). For other posts regarding Congress’s recent attempts to reform the NFIP, click here and here.
The Bill targets primary residential homes built before 1974 and valued at $600,000 or more. The subsidies currently provided to these homeowners would be gradually eliminated through increases to chargeable premium rates of 15% annually until the market rate is reached. The Bill now heads to the Senate for consideration.
We will continue to monitor NFIP-related developments and provide updates at InsureReinsure.com.