Asserts that FEMA has not complied with its requirements before implementing this law
In response to various complaints from Massachusetts homeowners who have been informed that they will likely be required to purchase mandatory flood insurance in excess of $10,000 dollars and up, Massachusetts Attorney General sent a letter to House Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nevada) urging Congress to delay FEMA’s implementation of the Biggert-Waters Flood Insurance Reform Act.
“We have already heard from many small businesses and homeowners about the devastating impact of this new policy,” AG Coakley said. “Several homeowners that purchased their homes in the last year—as the housing market was turning around—have been informed that the flood maps have been redrawn so that they are now required to purchase flood insurance at costs of $10,000 and up. For many, this additional cost is not feasible.”
Flood insurance is mandatory for those homeowners with mortgages who live in certain zones on the Flood Insurance Rate Maps. Under the redrawn maps, many homeowners and businesses have no choice but to have flood insurance. As a result, AG Coakley urged in her letter to Congressional leaders that premature implementation of this legislation is creating an untenable situation for homeowners, many of whom are not only receiving increased flood insurance rates but also are being forced to buy flood insurance for the first time.
“Premature implementation of the Act threatens the housing recovery that Massachusetts and the nation are just starting to experience,” AG Coakley states in the letter. “We believe that dramatically increased flood insurance rates will tip the balance for many homeowners who weathered the economic downturn, but are still feeling the residual effects of the housing crisis.”