The House Financial Services Committee has approved by voice vote a bill that would increase flood insurance premiums for purchasers of expensive homes that are located in flood zones and currently enjoy subsidized rates.The bill (H.R. 3959), sponsored by Rep. Scott Garrett, R-N.J., is aimed at phasing out subsidized premiums on newly purchased $600,000-plus beach homes so the subsidy is not passed on to buyers who know the property is located in a flood zone. The House has already passed the Flood Insurance Reform bill (H.R. 3121), which phases out subsidized premiums for commercial properties, vacation homes, and second homes built before 1974. House and Senate banking committee members are likely to consider the Garrett bill when they meet in conference to reconcile their respective flood bills.
