Homeowners Get Flood Insurance Rate Hike Protection

March 5, 2014 Updated: July 18, 2015

Thousands of New Yorkers facing massive flood insurance hikes might be off the hook. On Tuesday, the U.S. House of Representatives passed H.R. 3370, which reverses some changes to the National Flood Insurance Policy (NFIP).

Co-sponsored by New York City’s Rep. Michael Grimm and California’s Maxine Waters, the Homeowner Flood Insurance Affordability Act passed by a vote of 306–91.

NFIP has been heavily subsidized by the federal government for decades. Last year the law governing the subsidy was amended, making massive rate hikes for homeowners a very real possibility.

More than 26,000 homeowners and business owners in New York City would be impacted by the NFIP amendments, according to New York City congressional Rep. Nydia Velázquez. Some people could see rate increases of as much as $5,000 to $10,000 a year.

“By placing mandatory flood insurance outside the realm of affordability for working families, home values will decrease, and small businesses will be pushed out of our neighborhoods,” said Velázquez in a statement.

The widely supported bill had 238 co-sponsors and will now go to the Senate.