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US HR5740

US HR5740
National Flood Insurance Program Extension Act


summary

Introduced
In Committee
Crossed Over
Passed
Dead
Signed/Enacted/Adopted
05/31/2012

Introduced Session

112th Congress

Bill Summary

Amends the National Flood Insurance Act of 1968 (NFIA) to extend the National Flood Insurance Program, including its funding, through July 31, 2012. Prohibits the Administrator of the Federal Emergency Management Agency (FEMA) from estimating subsidized flood insurance premium rates for any residential property which is not the primary residence of an individual (such as a vacation home or second home). Increases by 25% each year the chargeable risk premium rate for flood insurance for residential property which is not the primary residence of an individual until the average risk premium rate for such property is equal to the average of the risk premium rates for any properties within any single risk classification. Declares July 1, 2012, the effective date for the first such increase.

AI Summary

This bill extends the National Flood Insurance Program, administered by the Federal Emergency Management Agency (FEMA), through July 31, 2012, ensuring continued coverage and funding for flood insurance. A key provision prohibits FEMA's Administrator from setting subsidized flood insurance rates for properties that are not an individual's primary residence, such as vacation homes or second homes. Instead, the annual flood insurance premium rates for these non-primary residences will increase by 25% each year, starting July 1, 2012, until the average rate for these properties reaches the average rate for other types of properties within the same risk category. This change aims to make flood insurance rates more reflective of the actual risk for non-primary residences.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Became Public Law No: 112-123. (on 05/31/2012)

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