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U.S. Senate passes flood insurance protection plan but House raises hurdle

From Associated Press:

Hundreds of thousands of homeowners in coastal and flood-prone areas would win protection from sharply higher federal flood insurance premiums under legislation muscled through the Senate on Thursday after angry constituents inundated Capitol Hill with complaints.

The 67-32 vote reflects widespread alarm about changes enacted two years ago to shore up the program's finances. In many cases the changes produced unexpected, sky-high insurance rates that are unaffordable for many homeowners in flood-prone areas whose insurance has historically been subsidized by the government and other policyholders.

"Something is just terribly wrong when homeowners are more worried about raging flood premiums than they are about raging floods," said Sen. Jeff Merkley, D-Ore.

The bill would delay for up to four years huge premium increases that are supposed to phase in next year and beyond under new and updated government flood maps. It also would allow homeowners to pass below-cost policies on to people who buy their homes. People who have recently bought homes and face sharp, immediate jumps in their premiums would see those increases rolled back. More here. 

 

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Ed Jenkins

As the citizens and readers have stated they do not want their money confiscated for the purpose of subsidizing people who have chosen to live in risky places. Market rates of insurance allow for proper pricing of houses as home buyers will take into account the full cost of housing when deciding if a house fits into their budget.

Bill Thompson

The actions of government should not be disruptive of the free markets and the transactions of commerce. The Biggert-Waters act passed in 2012 is exactly that. The reason that the USA is the economic power that it is and the leader of the free world is because of our open economy and the rule of law. This law abruptly changed the rule of law regarding flood insurance and is drastically disrupting the real estate market place and the flow of commerce. It is damaging to the real estate industry and to many average citizens who overnight are seeing their premiums go up drastically and dropping the values of their largest asset, their homes. This is being done by government changing the rule of law drastically overnight. The government also arbitrarily changes the flood maps, putting houses into a flood zone that were not in a flood zone when they were purchased. If adjustments are required, there should be a long phase in period to allow the market place to adjust. This is not how a party that allegedly believes in free markets and small government should conduct itself. This is how a russian politburo acts. The GOP needs to fix this or face the consequences in November.

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