Photo: U.S. Sen. Charles Schumer on Monday called a FEMA flood coverage fee “unfair” and “confusing.” Courtesy of Sen. Schumer’s Office.
U.S. Sen. Charles Schumer (D-N.Y.) this week demanded that the Federal Emergency Management Agency make major changes to what he called “a new, unfair flood insurance policy that has led to the misapplication of an additional fee of $250 for many New York homeowners renewing their flood coverage.”
On April 1, Schumer said, FEMA began charging flood insurance policy holders an additional $250 for secondary residences and $25 for primary residences; however, he noted, homeowners must fill out a new “proof of primary residency” form with their yearly insurance renewal, otherwise the agency will default to charging them the secondary home fee of $250. While the majority of city homeowners affected by the policy are primary homeowners, many of these policy holders are being charged $250, the secondary residence fee. Schumer said this is because many residents, and even some insurance companies, are in the dark on the new renewal requirement and haven’t been filling out the necessary documents.
On Monday, Schumer first warned residents of the policy change and urged them to check their bills to see if they were charged an extra fee of $225. He is also pushing FEMA to scrap “this ill-conceived policy altogether” and go back to the drawing board to come up with guidelines that are not “potentially punitive” to homeowners, especially since so many are still getting over the devastation of Superstorm Sandy.
Asked to clarify the issue, a FEMA spokeswoman told The Forum, “The Congressionally mandated reforms to the National Flood Insurance program are designed to ensure the long-term stability of the program, while remaining sensitive to the needs of policyholders. All policyholders in every state are subject to these Congressional reforms, and insurance providers have not reported widespread cases of errors to billing to FEMA. Providing flood insurance through the National Flood Insurance Program is an important way communities can protect themselves from one of the most common and costly disasters we face. We’ve worked hard to communicate these changes over the past year and we encourage any policyholders who have any questions or concerns about their rate changes to contact their insurance company immediately to ensure their records accurately reflect the status of their policy.”
Homeowners who want more information or have questions regarding potential policy issues are encouraged to log on to fema.gov/national-flood-insurance-program.
By Michael V. Cusenza michael@theforumnewsgroup.com
