Ackerman Hails Passage of Federal Flood Protection Bill; Measure Extends Protections to Queens and Long Island Homeowners and Condo-Owners

(Washington, DC) - U.S. Rep. Gary Ackerman (D-Queens/L.I.) today hailed the passage by the House of Representatives of legislation that extends added flood and wind protection to homeowners throughout the country, addressing many of the homeowners insurance problems that have plagued Queens and Long Island.  

The measure, which originated in the Financial Services Committee, of which Ackerman is a senior member, provides new benefits for individual homeowners. These include extending insurance coverage for wind damage caused by a hurricane or natural disaster. This new provision will provide local homeowners with more choices in selecting coverage since many insurance companies substantially increased or refused to write policies in Queens and Long Island due to potential wind damage from future storms. Limits range up to $500,000 for houses and $150,000 for property inside homes.

The legislation also includes a provision prohibiting the Federal Emergency Management Agency (FEMA) from enforcing penalties against individual condo-owners in cases where their condominium complex or condo association lacks enough flood insurance to cover damages caused by a flood.

Presently, FEMA may assess penalties on condo-owners in the wake of flooding disasters if their condo associations or complexes lack sufficient insurance coverage.

The bill also increases the maximum coverage for residential flood insurance policies from $250,000 to $335,000 and renews the federal flood insurance program for an additional five years.

“Passage of this legislation is a real win for local home and condo owners” said Ackerman. “As evidenced by the severe storms that ripped through the area in August, many of our communities are constantly at-risk for flooding. This legislation ensures that condo owners do not suffer financial burdens from floods and that homeowners have expanded protections.”

The bill also allows small business owners to be eligible to purchase business interruption coverage in order to meet payroll and other obligations in the event of flooding. In addition, the legislation makes the updating and modernization of flood maps an ongoing process. Further, it calls for greater disclosures to consumers about flood insurance such as increasing the fines on lenders who do not enforce mandatory flood coverage.

Under the federal flood insurance program, the federal government backs flood insurance policies that could not be purchased in the private marketplace. These usually include homeowners, renters and business owners in coastal and other flood-prone areas such as Queens and Long Island. The program, which is administered by FEMA, was established by Congress in 1968.

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