Lautenberg Introduces Flood Insurance Amendment to Protect New Jersey Homeowners from Rate Hike

WASHINGTON, DC – June 27, 2012 – (RealEstateRama) — U.S. Senator Frank R. Lautenberg (D-NJ) is working to protect residents of more than 1,800 New Jersey homes from a major flood insurance rate hike. The Senate is currently debating a bill to reform the National Flood Insurance Program, and Senator Lautenberg has introduced amendments to maintain current premium rates for individuals in homes built before many of the federal flood maps were first drawn.

“This amendment would benefit hundreds of New Jersey families who purchased their homes before flood zones were determined. These families have built their lives in these homes and we shouldn’t change the rules on them in the middle of the game. Imposing massive premium increases on these families is unfair and I’m going to fight it,” Lautenberg said. “The flood insurance program needs to be reformed, but reform shouldn’t mean more pain for New Jersey families that have already suffered from storms and flooding in recent years.”

Under current law, individuals living in homes in areas that frequently flood and were built on or before December 31, 1974, or before the publication of a flood insurance rate map for their community, pay lower rates for their federal flood insurance plan than those who own newer homes. These lower rates would no longer be available under the National Flood Insurance Program reform legislation currently being debated. Many of these families have paid the lower rates for nearly four decades, and on average would see their premiums double under the legislation.

While Lautenberg is fighting to include his amendments, progress on the bill has been delayed by a controversial amendment unrelated to flood insurance that was introduced by a Republican Senator.

Contact:
Lautenberg Press Office, 202-224-3224