The House of Representatives has proposed HR 3922, a bill offering property owners outside of FEMA-declared flood hazard zones the opportunity for retroactive coverage under the National Flood Insurance Program for damage suffered in the wake of Hurricanes Katrina and Rita.

Cited as the “Hurricanes Katrina and Rita Flood Insurance Buy-in Act of 2005,” the bill would provide flood insurance coverage to property owners covered by windstorm insurance, but who were exempt from a mandatory purchase of national flood insurance based FEMA’s flood zones.

HR 3922 would make flood insurance available retroactively for eligible structures, with contents excluded, damaged by Katrina and Rita in declared disaster areas.

The bill would permit property owners to insure their structure for the maximum amount of coverage available under the lesser of either the national flood program or the owner’s policy for wind and windstorm losses based upon the coverage limits in effect on Aug. 29, 2005.

Premiums under HR 3922 will equal 105 percent of the combined amount of premiums that would have been charged for a 10-year coverage period. But a property owner can deduct these premiums from any claims payable under the coverage.

If insurance is obtained pursuant to the bill, property owners must agree to maintain future coverage with the national flood plan on their property for either the value of the structure or the maximum limit of coverage available.

HR 3922, after being introduced by Rep. Gene Taylor (D-MS), is currently in the first step of the legislative process before the House Committee on Financial Services, who will determine if the bill should be presented to the House as a whole. It must be passed by both the House and Senate and then signed by the President before it becomes law. 

To view the full legislation please click on the following link,

    Hurricanes Katrina and Rita Flood Insurance Buy-In Act of 2005