House passes flood insurance relief bill

In what could be a sign of relief for several Franklin Square and Elmont homeowners, the House of Representatives passed the Flood Insurance Reform Act of 2011 on July 13.

Through 2012, homeowners in the county's high-risk flood zone — mainly, Valley Stream residents — are paying reduced rates when they renew their policy. However, those rates — which are hundreds, and sometimes thousands, of dollars lower per year than full market rates — are part of a relief program that is set to expire in 2013.

Rep. Carolyn McCarthy (D-Mineola), a co-sponsor of the bill, explained that although Franklin Square and Elmont aren't currently in the high-risk flood zone, they could be in the future, since maps are updated periodically. Additionally, she said, individual homes within Franklin Square and Elmont could still be in the high-risk zone.

"They could possibly be in the flood zone down the road, so we’re trying to cover everyone in Nassau County," McCarthy said. "For those who don’t have flood insurance, and they find themselves in the maps, we want to make sure they have the best opportunity to get the flood insurance, and it’s at the best cost possible."

McCarthy said that the bill works to protect residents who are in the high-risk flood zone, who have federally backed mortgages, and are required to have flood insurance.

McCarthy recently introduced two amendments to the bill, which were passed on May 12. One amendment extends reduced rates for another five years, with savings phasing out over that five-year period; and the other requires the Federal Emergency Management Agency to notify members of Congress when new areas are added to the flood zone.

“Reducing the financial burden, improving notification and improving the science behind mapping are a good start for bringing relief to homeowners who have been burdened by FEMA’s flood insurance program,” said McCarthy, a co-sponsor of the legislation. “I’m proud to have had so much input into the Flood Insurance Reform Act of 2011 and will continue to seek ways to address the concerns of homeowners living in FEMA flood zones.”

The Flood Insurance Reform Act also gives homeowners the ability to pay their flood insurance bills in installments, instead of one upfront payment as required by most insurance companies.

“We need to use every tool available to bring relief to homeowners who are being burdened by FEMA’s flood insurance program,” McCarthy said. “If these changes become law, we will be saving homeowners substantial amounts of money and give them more notice ahead of changes that could significantly affect their lives.”

Sen. Charles Schumer introduced a companion bill in the Senate. McCarthy said that the legislation has received wide support, and she believes the bill will be passed.

Questions about this story? JNash@liherald.com or (516) 569-4000 ext. 214.