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U.S. Senators Propose Bill To Fix Flood Insurance Problems

U.S. Senators say the plan calls for sweeping reforms.

Bipartisan legislation proposed by several federal lawmakers would extend the U-S flood insurance program for six years and make some changes to discourage waste and abuse.

Louisiana U.S. Senator John Kennedy says the legislation would cap flood insurance premium increases for homeowners at 10 percent a year.

“That’s a big step because if you look at what we have now, flood insurance can go up 18 percent for a homeowner. And if it’s your second home or a commercial establishment, it can go up 25 percent.”

Senator Bob Menendez of New Jersey says the plan would streamline the claims process and ban aggressive legal tactics that delay flood insurance payments.

“After Sandy, FEMA wasted tens of millions of dollars fighting homeowners in court, giving rise to an entire cottage industry of attorneys who get rich by dragging out litigation over flood claims. That needs to stop.”

Krista Sperber with the New Jersey Organizing Project is thrilled with the proposal.

"The abuse of insurance companies is something that is really difficult to recover from. In my case in meant that my family was out of my house for years because we couldn't get a fair settlement without going to court."

The legislation would also provide funding to help homeowners pay for flood proofing, elevation, and other mitigation projects to prevent future storm damage.