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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | January 8, 2015 01:36 PM |
|---|---|
| From: | Representative Thomas P. Murt |
| To: | All House members |
| Subject: | Flood Insurance Premium Assistance Program |
| I am planning to introduce former Rep. Ron Miller's prior HB 1156 regarding a flood insurance premium assistance program. Flooding, and the tremendous amount of money it costs the Commonwealth due to the lack of flood insurance participation, is a huge policy issue. Pennsylvania is the most flood prone state in the nation, yet the majority of its homeowners and businesses are uninsured. This has created a situation where the majority of flood victims in the Commonwealth suffer economic damages that cannot be addressed by a state disaster assistance fund, and in more than half of all floods, does not qualify for Federal aid. This situation has left homeowners and businesses financially distraught, as their only options for assistance are either ad hoc state programs that are many times insufficient or, in rare instance, Federal aid which is most times in the form of a loan. Furthermore, a substantial amount of taxpayer funding is being spent to cover the losses of the uninsured, as Federal assistance is taxpayer funded, as are the state programs. Finally, the state is also continuing to pay a heavy price to cover uninsured flood losses, as, in the case of the 2005-2006 floods, the state share of Federal disaster assistance as well as the many impromptu programs that are being utilized, will cost the Commonwealth tens of millions of dollars. To address this costly situation, this legislation will create a program that will assist eligible Pennsylvanians with 15% of their flood insurance premium, as a way to encourage the purchase of flood insurance. The language of the bill is flexible to allow the Insurance Department and FEMA to work out an agreeable process to administer the program, and has the potential to greatly increase the number of Pennsylvanians who proactively protect themselves with flood insurance. |
Introduced as HB1029