coalition for sustainable flood insurance
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Coalition for Sustainable Flood Insurance. April 16 , 2014 Coastal Protection and Restoration Authority. CSFI Key Principles. NFIP should: Be long-term sustainable Be actuarially responsible Protect home and business owners who have “played by the rules” Built to code - PowerPoint PPT PresentationTRANSCRIPT
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Coalition for Sustainable Flood InsuranceApril 16, 2014Coastal Protection and Restoration Authority
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CSFI Key Principles
NFIP should:
1. Be long-term sustainable
2. Be actuarially responsible
3. Protect home and business owners who have “played by the rules”
• Built to code
• Maintained insurance
• Not had repetitive losses
We believe in three key principles about NFIP:
08.19.2013
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Example: Primary Homeowner
• Belle Chasse, LA• Built in 1998, fully to code• Built 2’ above FEMA
required elevation at the time
• House never flooded
Problem: Premium will go from $633 to $17,723 per year.
2013MayNFIP - Problem
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NFIP - Problem If this problem was not addressed, the potential impact could have proved devastating:
Properties become uninsurable
Properties become unsalable
Property values go to zero
Owners lose everything
Banks lose mortgage portfolio
Real estate market freezes
Companies lose workers
Local governments lose tax base
Economies are destroyed
NFIP, itself, goes into “death spiral” as people leave program
Building a National CoalitionCSFI Formation
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• GNO, Inc.• Parish Presidents• American Bankers
Assoc.• Independent Comm.
Bankers Assoc.• Mortgage Bankers
Assoc.• Nat’l Assoc. of Counties• Nat’l Assoc. of Home
Builders• Nat’l Assoc. of Realtors• 34 states• 200+ organizations
from across USA
2013May – Dec
Response: Coalition for Sustainable Flood Insurance
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CSFI GOALS
Educating Congress and Citizens about perilous impacts of Biggert-Waters
Advocating for affordable, sustainable flood insurance
Education and Advocacy
CSFI Results
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Passage of H.R. 3370 Homeowner Flood Insurance Affordability Act
✔
2014March
Senate VoteYeaNay
77%
✔
House VoteYeaNay
77%
72 votes22 votes
306 votes91 votes
Result: Bipartisan, Bicameral Action for LA and USA
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The Homeowner Flood Insurance Affordability Act
•Reinstates Grandfathering
•Removes the Property Sales Trigger
•Requires for FEMA to strive for 1% of policy cost limit (and report)
•Caps Annual Premium Increases at 15%
•Reimburses Policy Holders for Successful Map Appeals
•Refunds Policy Holders w/ Exorbitant Rates
•Funds and Mandates Completion of Affordability Study within 2 Years
•Allows for $25 Annual Surcharge
•Includes Minimum 5% Increase on Pre-FIRM properties
What the Bill Does:
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CSFI Next Steps
• Formalization into 501(c)(6) w/ National Board and Advisory Council
• Continued Dialogue with FEMA and Congress on Implementation
• Proposal of Long-Term Options for Affordable Flood Insurance
Ensuring Successful Implementation and Reauthorization
Contact InformationCaitlin BerniO: 504.527.6980C: [email protected]
Michael HechtO: 504.527.6907C: [email protected]
On the webcsfi.infognoinc.orgtwitter.com/gnoincfacebook.com/gnoincOur address365 Canal StreetSuite 2300New Orleans, LA 70130
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