The Biden administration’s proposed major overhaul to the National Flood Insurance Program, or NFIP, would drastically alter how Americans protect homes and businesses against flooding.
The administration recently announced 17 legislative proposals that would represent the biggest reform to the NFIP since the program’s inception. One change would be a nationwide disclosure law that would ensure that prospective homeowners and renters have a property’s flood history before signing a contract. Today, 21 states have no such law.
Another proposal would prevent NFIP from issuing any new insurance policies for commercial buildings no matter where they’re located or when they were built because FEMA says it wants to promote growth in the private flood insurance market. Americans hoping to build new homes on eroding beaches and other flood-prone areas would also have to look elsewhere for insurance.
Homeowners would have to go to private insurance companies, which typically charge more expensive insurance premiums. People who hold mortgages on properties that flood multiple times and require insurance payouts of at least $10,000 each time, could lose access to government insurance on their properties after the fourth claim.
The proposals must pass Congress to become law, but there is support from both sides of the political aisle with a view that the status quo is becoming financially unsustainable.
Related Stories
| Dec 18, 2014
Deal on 2015 budget slashes most federal construction spending
The $1.1 trillion funding bill for fiscal year 2015 approved by Congress makes deep cuts in some construction programs, but the General Services Administration suffered just a short haircut by comparison.
| Dec 11, 2014
Mayor backs reform of Pittsburgh inspection, permitting practices
The proposal, among other things, would impose a rental registration program and fee targeted at keeping better track of problem landlords.
| Dec 11, 2014
Los Angeles mayor proposes earthquake retrofit program
The ambitious program would focus on some apartment buildings built before 1978 and concrete buildings constructed before 1976.
| Dec 11, 2014
Outdated building code hampering recruitment of high-tech businesses in New York State
New York State’s building code is outdated and is hampering the recruitment of high-tech employers, according to a coalition of construction, fire safety, and insurance industry groups.
| Dec 11, 2014
Defense Authorization Act rejects BRAC for 2017
The House of Representatives has passed the $584.2 billion Defense Authorization Act.
| Dec 4, 2014
New airports raising green standards to new heights
Recent airport designs are bigger and much more efficient, based on a look at recent projects in Mexico City, London, and China.
| Dec 4, 2014
Rock Hill, S.C., puts moratorium on multifamily construction
City officials say the flurry of apartment construction over the past year has strained resources, including public services and infrastructure.
| Dec 4, 2014
Ontario contractors renew push for prompt payment legislation
A new coalition of Ontario contractors, construction associations, suppliers and trade unions will push for a revival of prompt payment legislation late this year.
| Dec 4, 2014
Roofing material manufacturers extend research project on sustainable roofing
A coalition of trade groups is sponsoring continued analysis of a reroofing project at the Onondaga County Correctional Facility in Jamesville, New York.
| Nov 26, 2014
Colorado must fix construction defects law, Denver Post says
Colorado's “vexing construction defects law” has hampered the building of new condominiums in the state, according to an editorial in the Denver Post.