Mick Mulvaney: Subsidizing Flood Insurance is Wrong

Should people living in low risk areas for flooding have to pay higher flood insurance premiums to subsidize the flood insurance of people in high risk areas?

Rep. Mick Mulvaney (R-SC) does not think so; nor do we, which is why we key voted against the Cassidy-Grimm-Palazzo Amendment to the Department of Homeland Security Appropriations act of 2013.  Section 207 of the Biggert-Waters Flood Insurance Report Act of 2012 was designed to bring a level of fairness to the federal flood insurance program, and the Cassidy-Grimm-Palazzo Amendment would prevent this good reform from going into effect.

Rep. Mulvaney explained he wants to “bring reason and rational thought” to a government flood insurance program by saying people in riskier areas should pay more.  “At the end of the day,” he said, “this program was designed to bring some sanity to this flood program, which is why so many people, myself included, voted for [the Biggert-Waters Flood Insurance Report Act of 2012] originally.”

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Rep. Mulvaney wants to “bring reason and rational thought” to a government flood insurance program.

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One thought on “Mick Mulvaney: Subsidizing Flood Insurance is Wrong

  1. I agree with Rep. Mulvaney. I’m a licensed Insurance Agent in NJ and have been selling Flood Insurance for the past seven years. It’s amazing to me when I would quote a home that is a few blocks from the ocean and that policy is cheaper than someone who lives over 10 miles inland with no levees nearby.

    The NFIP – National Flood Insurance Program is set to increase premiums 25% each year for the next four years and they are also planning on expanding the high risk Flood areas. So many Homeowners and Commercial Property Owners will be getting letters from their Mortgage Co. stating that because they were rezoned into a high risk area, the must purchase Flood Insurance. If you own property and are on the edge of a Flood Zone it might be worth buying a policy now before they change your zone because the Insurance is much cheaper now. When the Zones change than your property might be eligible for grandfathering which would give you a few more years at the lower premium

    It’s also amazing to me that so many consumers who have Flood policies in force come to me looking to save money and have no idea what is covered and when they can file a claim. For instance, if you have contents coverage only the washer,dryer and food freezer are covered in the basement. The main operating systems like the Furnace, hot water are covered under the building coverage.

    Many Homeowners also confuse water seepage with a Flood. Water seepeage is not covered by Flood Insurance. You need a special endorsement on your Homeowners Insurance for that protection.

    Property owners who are required to purchase Flood Insurance must due their research to understand these policies because so many people waste money on premium because they just do not understand how it works.

    Maybe there needs to be more companies offering Flood Insurance with their own set of rates. What do you think?

    Lou Shults
    http://www.cheapfloodinsurancenj.com

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