coalition for sustainable flood insurance

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Coalition for Sustainable Flood InsuranceApril 16, 2014Coastal Protection and Restoration Authority

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CSFI Key Principles

NFIP should:

1. Be long-term sustainable

2. Be actuarially responsible

3. Protect home and business owners who have “played by the rules”

• Built to code

• Maintained insurance

• Not had repetitive losses

We believe in three key principles about NFIP:

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Example: Primary Homeowner

• Belle Chasse, LA• Built in 1998, fully to code• Built 2’ above FEMA

required elevation at the time

• House never flooded

Problem: Premium will go from $633 to $17,723 per year.

2013MayNFIP - Problem

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NFIP - Problem If this problem was not addressed, the potential impact could have proved devastating:

Properties become uninsurable

Properties become unsalable

Property values go to zero

Owners lose everything

Banks lose mortgage portfolio

Real estate market freezes

Companies lose workers

Local governments lose tax base

Economies are destroyed

NFIP, itself, goes into “death spiral” as people leave program

Building a National CoalitionCSFI Formation

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• GNO, Inc.• Parish Presidents• American Bankers

Assoc.• Independent Comm.

Bankers Assoc.• Mortgage Bankers

Assoc.• Nat’l Assoc. of Counties• Nat’l Assoc. of Home

Builders• Nat’l Assoc. of Realtors• 34 states• 200+ organizations

from across USA

2013May – Dec

Response: Coalition for Sustainable Flood Insurance

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CSFI GOALS

Educating Congress and Citizens about perilous impacts of Biggert-Waters

Advocating for affordable, sustainable flood insurance

Education and Advocacy

CSFI Results

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Passage of H.R. 3370 Homeowner Flood Insurance Affordability Act

✔

2014March

Senate VoteYeaNay

77%

✔

House VoteYeaNay

77%

72 votes22 votes

306 votes91 votes

Result: Bipartisan, Bicameral Action for LA and USA

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The Homeowner Flood Insurance Affordability Act

•Reinstates Grandfathering

•Removes the Property Sales Trigger

•Requires for FEMA to strive for 1% of policy cost limit (and report)

•Caps Annual Premium Increases at 15%

•Reimburses Policy Holders for Successful Map Appeals

•Refunds Policy Holders w/ Exorbitant Rates

•Funds and Mandates Completion of Affordability Study within 2 Years

•Allows for $25 Annual Surcharge

•Includes Minimum 5% Increase on Pre-FIRM properties

What the Bill Does:

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CSFI Next Steps

• Formalization into 501(c)(6) w/ National Board and Advisory Council

• Continued Dialogue with FEMA and Congress on Implementation

• Proposal of Long-Term Options for Affordable Flood Insurance

Ensuring Successful Implementation and Reauthorization

Contact InformationCaitlin BerniO: 504.527.6980C: 985.502.7688cberni@gnoinc.org

Michael HechtO: 504.527.6907C: 504.715.5037mhecht@gnoinc.org

On the webcsfi.infognoinc.orgtwitter.com/gnoincfacebook.com/gnoincOur address365 Canal StreetSuite 2300New Orleans, LA 70130

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