Flood insurance reform enhanced by Iowa amendments

Two amendments offered by Iowa Democrats to the newly passed Flood Insurance Reform Priorities Act should alleviate some problems faced by state residents and local officials.

U.S. Rep. Dave Loebsack, D-Mount Vernon, whose district includes areas like Cedar Rapids and Iowa City that were hard-hit by 2008 flooding, offered and passed a bipartisan amendment that requires the Federal Emergency Management Agency (FEMA) to inform local television and radio stations of impending flood map updates. The ongoing flood map modernization process undertaken by FEMA has surprised some Iowa communities.

“My amendment helps make sure that homeowners know what is in store for them, making it easier for families to budget and plan for the possibility that they may have to purchase flood insurance. In order to help Iowans, we must ensure that they are part of the process that affects their homes and their families,” said Loebsack.

The move was praised by Cedar Rapids Mayor Ron Corbett.

“Dave and I worked together to help dozens of families facing a costly battle with the federal government,” he said. “Fighting for people is what good government is all about. It is important that Iowans work together to help make sure our communities come back better and stronger from the floods.”

U.S. Rep. Leonard Boswell, D-Des Moines, who represents a district that includes portions of Iowa that have undergone significant recent flooding, introduced and passed an amendment that requires state and local authorities to identify flood evacuation routes and to provide information to residents on how to obtain flood insurance in order to qualify for certain other programs within the bill.

“Flood waters rise quickly and when people are forced to evacuate, we must make sure that residents have the information they need to do so in a way that is safe. My amendment is about providing Iowans with the best possible information to keep their families and property safe,” Boswell said.

The legislation reauthorizes the National Flood Insurance Program for five years. It raises the maximum coverage limits for flood insurance policies, creates an installment payment program for flood insurance premiums, phases out insurance premium subsidies for second and vacation homes, and also delays the mandatory flood insurance requirement for homeowners in a neighborhood newly classified as a flood zone for five years.

Since 2008, the National Flood Insurance Program has been provided only short-term extensions by Congress — and has been allowed to lapse three time during the past year. During such lapses, insurers could not write new policies, which impacted both existing homeowners and potential real estate dealings. While the five-year extension will deal with the ongoing issues of lapses, opponents warn that Congress has not yet done enough to evaluate and perhaps re-write the program, which is operating under a budget deficit of $19 billion.

The bill passed in the U.S. House Thursday on a 329-90 vote. All members of the Iowa delegation supported the legislation except U.S. Rep. Steve King, a Republican representing the 5th District.