CSFI Legislative Update – July 28, 2017
CSFI Stakeholders –
I hope this email finds you all well. While we have made significant progress on the House package, including securing a commitment to remove the provision prohibiting offering coverage on new construction in the Special Flood Hazard Area and a preservation of grandfathering when communities adopt new maps, additional concerns have arisen with regard to the treatment of multiple loss properties. The Louisiana delegation received information recently from FEMA on how section 504 of HR 2874 would be interpreted, and it essentially means that any property will lose grandfathered status upon the filing of its second claim, no matter the amount of the claim. This provision is of concern both because it provides a strong disincentive from utilizing the insurance product people pay for and because it could negatively impact home values.
The Senate has not yet acted on its legislation.