Rick Scott Urges Nelson and Rubio to Stand Against NFIP Hikes

On Tuesday, Gov. Rick Scott sent a letter to Floridas two U.S. senators -- Democrat Bill Nelson and Republican Marco Rubio -- urging them to stand against increases in National Flood Insurance Program (NFIP) premiums.

Under current law, the sale of any property, or lapse of its policy, removes the rate glide path and forces the new or current owner to immediately pay full-risk rates, Scott wrote. In cases where new maps move a property into a flood zone, homeowners may find it impossible to sell their properties to a new owner who will be shocked with the massive premium increases required to secure a mortgage. This unfair consequence could devastate parts of Floridas real estate market, stymie Floridas economic recovery, and diminish the states tax base. Furthermore, the NFIPs finances may not improve as properties fail to change hands and participation in the program fails to materialize.

This cannot be what Congress intended, Scott continued. Over the past 35 years, Floridas families have paid into the NFIP over $16 billion, four times more than the amount they have received in claim reimbursements. We have done more than our fair share to make the NFIP financially sound. In addition, Floridas superior coastal building code standards and leading efforts in the area of hurricane loss mitigation have further reduced exposure for the NFIP. Floridas rates should commensurately reflect these important risk-mitigating factors.

The House of Representatives has already passed an amendment to the Flood Insurance Reform Act this past June, mandating a one-year delay on rate increases, Scott wrote in conclusion. I urge you to take immediate legislative action to ensure that the NFIP is improved in a way that is fair for Floridas families.