McKinley Votes to Reform Flood Insurance Program, Address Affordability


Date: Nov. 14, 2017

Today, the House passed legislation to provide relief to homeowners and businesses dealing with high flood insurance rates. The 21st Century Flood Reform Act makes critical reforms to the National Flood Insurance Program (NFIP).

"In 2014, flood insurance premiums were skyrocketing, putting an extreme burden on West Virginia families. We listened to our constituents, and passed a three-year fix that lowered rates and brought stability back to the market. Since this first step our office has conducted numerous meetings with homeowners, businesses, and local government representatives to hear their concerns and find solutions to make flood insurance even more affordable," said McKinley.

"This legislation is a five-year fix that encourages private sector competition by removing red tape, injecting some much-needed competition into the insurance market. It forces the NFIP to recognize the differences between coastal and inland communities when calculating flood insurance premiums. We will no longer tolerate the hard-working citizens of West Virginia subsidizing high-risk coastal property," McKinley said.

"As these reforms are implemented, we would appreciate hearing from homeowners," added McKinley. "That's the only way for us to know if these changes are effective in keeping premiums low."


The National Flood Insurance Program was first established as part of the National Flood Insurance Act of 1968. The 21st Century Flood Reform Act reforms the program and reauthorizes it for a period of five years. Some of the reforms included in the legislation are:

· Authorizes $1 billion to mitigate high-risk properties.

· Encourages private sector competition by removing hurdles that prevent them from competing with the federal program.

· Factors in risk differences between coastal and inland communities when determining premiums.

· Provides for community flood maps and streamlines the appeals process.

· Addresses repeat flooding properties which account for 2% of federal flood insurance policies, but also account for 25% of insurance claims.

In 2014, Congress took initial steps to address the issue of flood insurance affordability. The 21st Century Flood Reform Act is a continuation of these efforts aimed at making permanent reforms that increase accountability and affordability. This legislation is supported by the Trump Administration and a wide range of stakeholders, like the National Association of Realtors.

To view the full text of the bill, click here.

To view the Amendment offered by Rep. Sean Duffy as a substitute, click here.

To view the full text of the 2014 reform legislation, click here.