Flood Insurance Reform Act of 2004
Encyclopedia
The Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 reformed the National Flood Insurance Program
(NFIP) and the terms of the National Flood Insurance Act of 1968
. It was designed to "reduce losses to properties for which repetitive flood insurance claim payments have been made." The Act's main sponsors were Sen. Jim Bunning
, Rep. Doug Bereuter
, and Rep. Earl Blumenauer
.
The Act's preamble included the following Congressional findings that quantify the motivation for the new law:
When introduced in the House on January 8, 2003, the bill was called the Two Floods and You Are Out of the Taxpayers' Pocket Act of 2003.
National Flood Insurance Program
The National Flood Insurance Program is a program created by the Congress of the United States in 1968 through the National Flood Insurance Act of 1968 . The program enables property owners in participating communities to purchase insurance protection from the government against losses from flooding...
(NFIP) and the terms of the National Flood Insurance Act of 1968
National Flood Insurance Act of 1968
The National Flood Insurance Act of 1968 is a piece of legislation passed in the United States that led to the creation of the National Flood Insurance Program .The NFIP goals are two-fold:...
. It was designed to "reduce losses to properties for which repetitive flood insurance claim payments have been made." The Act's main sponsors were Sen. Jim Bunning
Jim Bunning
James Paul David "Jim" Bunning is an American former Major League Baseball pitcher and politician.During a 17-year baseball career, he pitched from 1955 to 1971, most notably with the Detroit Tigers and the Philadelphia Phillies. When he retired, he had the second-highest total of career...
, Rep. Doug Bereuter
Doug Bereuter
Douglas Kent "Doug" Bereuter is a retired Republican politician from Nebraska. He served in the United States House of Representatives from 1979 until 2004.-Early life:Bereuter was born in York, Nebraska and reared in Utica, Nebraska...
, and Rep. Earl Blumenauer
Earl Blumenauer
Earl Blumenauer is the U.S. Representative for , serving since 1996. He is a member of the Democratic Party. The district includes most of Portland east of the Willamette River. A native of Portland, he previously spent over 20 years as a public official representing the city.-Early...
.
The Act's preamble included the following Congressional findings that quantify the motivation for the new law:
- the NFIP insures approximately 4,400,000 policyholders;
- about 48,000 properties in the program have experienced, within a ten-year period, two or more flood losses where each loss is more than $1,000;
- about 10,000 repetitive-loss properties have experienced two or three losses that cumulatively exceed building value;
- these repetitive-loss properties cost the taxpayer about $200 million annually;
- about 1% of insured properties account for 25-30% of claims losses;
- the vast majority of repetitive-loss properties were built before the 1974 implementation of floodplainFloodplainA floodplain, or flood plain, is a flat or nearly flat land adjacent a stream or river that stretches from the banks of its channel to the base of the enclosing valley walls and experiences flooding during periods of high discharge...
management standards created under the original program and thus are eligible for subsidized flood insurance.
When introduced in the House on January 8, 2003, the bill was called the Two Floods and You Are Out of the Taxpayers' Pocket Act of 2003.
External links
- Senate and House Summary, from a Library of CongressLibrary of CongressThe Library of Congress is the research library of the United States Congress, de facto national library of the United States, and the oldest federal cultural institution in the United States. Located in three buildings in Washington, D.C., it is the largest library in the world by shelf space and...
website - Blumenauer's January 2003 news release about the bill