La.’s Melancon Supports Retroactive Flood Insurance Bill

September 30, 2005

U.S. Rep. Charlie Melancon said he will co-sponsor Rep. Gene Taylor’s legislation allowing home and business owners without flood insurance when Hurricane Katrina struck to receive compensation retroactively through the National Flood Insurance Program.

Taylor (D-Miss.) discussed the proposal this week at a town hall meeting in Gautier, Miss.

Melancon, in a news release Thursday, said he would help push the legislation.

As explained by Melancon, the bill would allow property owners who did not live in floodplains but were devastated by the hurricanes to be covered under the National Flood Insurance Program. They would have to pay the equivalent of 10 years of NFIP premiums, with a 5 percent penalty. Premiums would be set at a rate equal to the prevailing premium charged in the area prior to Hurricane Katrina.

The legislation also permits property owners to deduct premium payments and the penalty from the NFIP claim payment, Melancon said.

Bob Durrin, a NFIP specialist who has been on the Mississippi coast to provide claim statements for those who have flood insurance, said Taylor’s plan is “essentially retroactive coverage.”

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