Earlier this month, Congress approved a bipartisan compromise preventing millions of Americans from enduring unworkable flood insurance rates until better reforms are achieved. Although only a step in the process to a permanent solution, the “Homeowner Flood Insurance Affordability Act” is a big win for Mississippians whose livelihoods depend on affordable flood insurance. I was pleased that the legislation received overwhelming support in both the Senate and House of Representatives. It is an example of how Congress is supposed to work.

Correcting Biggert-Waters

The “Homeowner Flood Insurance Affordability Act” contains a number of needed provisions, in particular measures to “grandfather” homes and businesses that were built according to code but later remapped into areas with a higher flood risk. Property owners who have played by the rules should not be penalized because of inaccurate flood maps by the Federal Emergency Management Agency (FEMA). Nor should a property be subject to different rates from one owner to the next.

Skyrocketing increases in flood insurance premiums were an unfortunate consequence of the “Biggert-Waters Flood Insurance Reform Act” passed in 2012. The goal of Biggert-Waters was to make the National Flood Insurance Program (NFIP) sustainable after years of insolvency – an urgent and necessary goal. Since the unprecedented devastation of the 2005 hurricane season, the flood insurance program’s payments for losses have continued to exceed revenues, adding to the program’s debt. Returning the program to solvency and ensuring its future viability will not be easy.

Alleviating Undue Costs

Both political parties, however, agree that FEMA’s attempt to impose intolerable flood insurance rates went far beyond congressional intent. For many property owners, the difference between the new and old rates would have amounted to thousands and tens of thousands of dollars.

A homeowner from Greenville, for example, contacted my office saying that his flood insurance rate would go from $980 a year to $4,200. A real estate agent in Biloxi said she was unable to sell a $55,000 house because premiums would increase from $1,200 to $8,000.

It is important to recognize that these draconian rates would have burdened mostly middle-class Americans, not wealthy beachfront property owners. Moreover, the severe impact could diminish home values and discourage investment in communities, many of which are still recovering from catastrophic storms like Katrina and Sandy.

In punishing the people that NFIP is supposed to protect, excessive premium hikes threaten to force homeowners to go without coverage or move away. Neither property owners nor taxpayers benefit when flood insurance leads to foreclosure.

Seeking Long-Term Reform

The “Homeowner Flood Insurance Affordability Act” is a meaningful first step toward finding better options for real flood insurance reform. It allows for a necessary review of how premium increases could affect communities and property owners if not phased in properly. It also reinforces the need for FEMA to ensure its flood mapping methods are technically sound.

Mississippians who live and work near water depend on affordable and accessible flood protection. A sustainable NFIP is important to the future of our state, and I remain committed to seeking ways to achieve this without hurting the families and businesses who call Mississippi home.