Schumer calls for flood insurance program reform
SCHENECTADY, N.Y. » U. S. Sen. Chuck Schumer recently spoke about a new bipartisan federal legislative reform plan to reshape the National Flood Insurance Program ( NFIP) and make it work better for New Yorkers.
Schumer explained the NFIP’s authorization will expire Sept. 30 unless Congress extends the program that protects Capital Region homeowners in the event of major flooding, like from hurricanes and spring runoff.
Schumer said Capital Region homeowners are worried that Congress could allow the program to lapse in the middle of hurricane season.
In addition, Schumer detailed the National Flood Insurance Program Reauthorization Act of 2019 (S. 2187). Amongst other reforms, Schumer noted the plan would extend the NFIP for (5) years so Capital Region homeowners can breathe a sigh of relief.
He also explained how the plan would better protect policyholders from rate hikes on the horizon based on FEMA’s proposed plans, which he has rallied against.
“It was eight years ago that Irene and Lee tore through upstate New York, and flooded the Stockade in Schenectady, Amsterdam, Rotterdam Junction, and downtown Troy. Two years later, Sandy rocked Long Island and New York City. Those experiences cemented in our minds that the NFIP is a far too complex set-up that too often benefits insurance companies over homeowners,” Schumer said.
“I’ve led a vociferous effort to push for reforms we want and need. Well, today, many of those reforms are
now included in this bipartisan legislation that I believe Congress should pass this hurricane season. And I’m here today to report that there’s a good chance we will be able to extend this program for years to come, certainly better than we’ve seen in the past few years,” Schumer added.
“Troy residents know firsthand the devastating impact that flooding and extreme weather can have on inland waterfront communities,” added Troy Mayor Patrick Madden. “In the aftermath of Hurricane Irene, Senator Schumer fought to secure federal funding to stabilize areas impacted by flooding, including the repair the city of Troy’s downtown seawall, critical to protect vital infrastructure, businesses and residents along the Hudson River against future flood events.
“As Troy continues to attract new residents, businesses, and looks to future planning initiatives to address our environmental climate challenges, we need to ensure the continued availability of affordable flood insurance coverage through programs like the National Flood Insurance Program (NFIP) to improve the everyday lives of our residents. We applaud Senator Schumer’s continued commitment to local communities and his effort to renew and reshape the NFIP to provide longerterm protection and assistance for families and business owners in waterfront cities like Troy.”
Amongst other reforms, Schumer said the legislative plan would extend the NFIP for (5) years so Capital Region homeowners can stop dealing with the threat that the program may lapse year after year. And he explained how the plan would better protect policyholders from eye-popping rate hikes now on the horizon based on FEMA’s proposed plans, called Risk Rating 2.0, which he has already rallied against.
Schumer warned that the looming threat of a Sept. 30 expiration eliminates the NFIP’s authority to issue new insurance policies and existing contract policies would only be good until the end of the policies’ terms.
Moreover, an expiration restricts the NFIP’s authority to borrow money from the U. S. Treasury in the event of an emergency, crippling its ability to fulfill policy obligations should a major storm spur many insurance claims. Therefore, Schumer says the program cannot be allowed to lapse.
“And we are also here today, making this reauthorization push because it would finally allow Capital Region residents who live along the Mohawk and Hudson to exhale a little when it comes to the NFIP’s stability and predictability that is constantly in question given the continual threat of expiration, like it is now. We cannot keep getting to the edge of the proverbial cliff when it comes to reauthorizing the NFIP because it drives communities mad, and rightfully so,” Schumer added.
“I want to get both of these things done this hurricane season: reauthorize the NFIP for the long-term and pass a bipartisan reform package,” Schumer concluded.
The NFIP currently covers approximately 5 million policyholders nationwide. As of this June, there were 2,292 NFIP policies in force between Schenectady, Montgomery, Albany, and Rensselaer counties and 2,250 contracts in force.