Congressman Cassidy – Flood Insurance Program Not A Wise Program
Congressman Bill Cassidy spoke with Ken Romero Friday afternoon to discuss the Biggert-Waters Act and the impending cost increase of flood insurance to Louisiana citizens.
According to Congressman Cassidy,
Everybody knows the Biggert-Waters Act, the national flood insurance program bill was passed by the previous Congress and it was supposed to make insurance available. Unfortunately FEMA has implemented the program as to make the flood insurance unaffordable. Now we have passed the Cassidy Amendment, named after me, it was my amendment which has delayed premium increases up until June, 2016. The problem is that if you only delay, that works, that helps but if you're only delaying you have this sword hanging over the sale of your home.
When asked to explain how his amendment would help home owners Cassidy said,
We're working on something which I will be considered by the House week after next which will give permanent relief. So if you decide to sell your home you and the buyer will have permanent knowledge as to what the premiums might be...So we think this is what's needed to make a functioning real estate market as well as a functioning insurance market.
We noted hearing stories about vacation homes on the coasts of Florida and Alabama being repeatedly replaced after hurricanes and wondered if those costs were being shifted to home owners in Louisiana and Congressman Cassidy replied,
We're making the point that this is not about millionaire's vacation homes on the coast of Florida. This is about Louisiana middle-class families trying to keep their homes as they work on Louisiana's 'energy coast'. A family in St. Charles Parish with a $180,000 home and they estimate their national flood insurance premium will be $20,000 a year. Think about it, in nine years they will pay as much in insurance premiums as the value of their home.
To hear the entire conversation with Congressman Cassidy click on the blue arrow below: