Bush signs Flood Insurance extension and reform bill.
In June, President Bush signed S. 2238, the
Bunning-Bereuter-Blumenauer Flood Insurance Reform Act, which extends
the National Flood Insurance Program (NFIP) within the Department of
Homeland Security until 2008. Reforms in the law will address the
problem of repetitive loss properties through flood mitigation. The law
authorizes the launch of a pilot program that will require people to
either accept mitigation assistance or face significantly higher
premiums. Owners who refuse assistance will no longer be eligible for
subsidized flood insurance far below the actuarial risk rate they should
be paying. Over time, as mitigation offers change the nature of
repetitive loss properties, the NFIP is expected to save a significant
amount of money. The Federal Emergency Management Agency estimates that
these properties alone cost the program $200 million annually.
edited by Amanda Druckman