ATLANTA — Georgia Insurance Commissioner Ralph Hudgens is prepared to testify or file a friend-of-the-court brief in support of Mississippi’s lawsuit to block higher federal floor-insurance premiums.
Speaking to civic leaders from Effingham County Tuesday, Hudgens said his office has nothing to do with the federal program, but he is eager to take action to support Georgia property owners facing premium increases.
Congress passed the Biggert-Waters Federal Flood Insurance Reform Act two years ago in response to a $24 billion deficit following claims from Hurricane Sandy. It withdraws 25 percent of the federal subsidy yearly while premiums rise until they are sufficient to cover potential future claims.
But Hudgens said the law required an evaluation period before the premiums rise and the lawsuit is designed to hold the government to that.
The U.S Senate votes soon on delaying the premium boosts for four years although Republicans leading the House and the White House have expressed opposition.
Resolutions in the Georgia House and Senate call for repeal of Biggert-Waters, and Hudgens said he supports them. His long-term solution is to end federal flood insurance entirely.
“I would much, much, much rather see a free-market solution than the federal government do it,” he said.
Biggert-Waters also requires updating of federal flood zones, which could determine which property owners will be required to purchase flood insurance by their mortgage holders.
Russ Pennington, director of policy and public affairs with the Georgia Environmental Protection Division, said Tuesday the impact hasn’t been drastic so far.
“What we’ve seen in other parts of the state that have preceded Effingham area specifically, it seems to be a wash,” he said. “Some areas are found to no longer be in the flood zone; some new areas are found to be in the flood zone. That’s just a process that is working itself out.”
