Program Could Have Arbitrarily Cost Unsuspecting Families in Pennsylvania
WASHINGTON, DC – U.S. Senator Bob Casey (D-PA) released the following statement upon the Senate’s reauthorization of the National Flood Insurance Program:
“Pennsylvanians know all too well the devastating cost of flooding. Reauthorization of the National Flood Insurance Program will give families across the Commonwealth a measure of security. I was gratified that it was passed by a bipartisan vote. I was also pleased that the mandatory insurance requirement which would have arbitrarily penalized unsuspecting families was stripped from the bill.”
In 1968, Congress created the National Flood Insurance Program (NFIP) to address the increasing costs of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods.
The National Flood Insurance Program allows property owners in participating communities to buy insurance against flood losses from the federal government. 5.6 million property owners rely on the program in 21,000 communities where flood insurance is required for federally related mortgages. In June 2010, the program lapsed and 47,000 home sales stalled, according to National Association of Realtors survey data. Further research confirms that another shutdown would risk 1,300 more sales each day.
Senator Casey asked the Senate leadership to remove the residual risk provision in the bill which included mandatory insurance requirements that ignored taxpayers’ investments in flood control infrastructure, diminished local control and unfairly penalized residents across the state. The provision was ultimately stripped from the bill.