WASHINGTON, D.C.–Flood insurance premiums could be rising for many coastal residents in a big way soon, but some legislation is aimed at stopping just that.
An amendment partly headed by U.S. Representatives Steven Palazzo of Mississippi’s 4th District has passed the House and is now headed to the Senate.
“It delays or halts the increases of going into effect for one year,” said Palazzo.
That legislation is the Cassidy-Grimm-Palazzo-Richmond amendment and is trying to curb the increase of flood insurance premiums going up 25 percent, each year, for the next five years because of the Biggert-Waters Act of 2012.
Palazzo pointed out that many Mississippi Gulf Coast residents just now are getting fully settled back into their way of life after Katrina, and now this huge increase seems like a penalty for doing things the right way.
This amendment would give FEMA time to do an affordability study to actually see how this would affect people on a financial level who will see rate changes due to the map changes that set flood insurance.
There doesn’t seem to be a magic wand that will suit both sides, both insurance companies and home owners, but Palazzo said the main goal is simple.
“To get people access to affordable insurance in a compassionate way.”