Terry Flood Insurance Reform Proposal Becomes Law

U.S. Rep. Lee Terry is meeting with success, again, in gaining passage of his legislation.

The House and Senate recently passed an omnibus bill that includes a provision authored by Terry to reform the federal flood insurance program to prohibit the use of the unfair “flood in progress” exclusion.  This means policyholders will more easily be able to receive payments on claims they submit.  (HR 4348, Conference Report, 2012)

 Under Terry’s law, property damage caused by a flood will need to be reimbursed to the policyholder for events that occur after an initial 30-day waiting period.  Last summer’s Missouri River flooding heightened the need for reforms to the law.  Some policyholders had their claims turned down when the flood was deemed to have started prior to the time the individual policy was written, even though the actual damages to the property did not occur until after the initial 30-days.

Terry’s law levels the playing field on flood insurance and restores fairness to homeowners who pay premiums for coverage.

The success adds to the list of legislation that has become law under Terry’s sponsorship and leadership.  Among these are the important “Hill-Terry” law passed in 2007 to increase the fuel economy standards of cars, light trucks and SUVs.  The law will save the U.S. from importing 400 million barrels of oil per year from the Persian Gulf when fully implemented.