[Congressional Record Volume 153, Number 144 (Wednesday, September 26, 2007)]
[Extensions of Remarks]
[Page E1987]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         FLOOD INSURANCE REFORM AND MODERNIZATION ACT (HR 3121)

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                         HON. CAROLYN McCARTHY

                              of new york

                    in the house of representatives

                     Wednesday, September 26, 2007

  Mrs. McCARTHY of New York. Madam Speaker, I rise in support of H.R. 
3121, the Flood Insurance Reform and Modernization Act. This 
reauthorization and update of the National Flood Insurance Program is 
needed to ensure all home and business owners in flood zones have the 
ability to plan for the worst and purchase an appropriate level of 
coverage.
  In 2005, we witnessed the extreme case of storm damage. Hurricanes 
Katrina and Rita showed that insurance companies try to blame wind 
damage on water. Too many lawsuits have been filed to try to resolve 
the dispute. This bill creates an option: homeowners can purchase a 
multiperil policy that will pay them for hurricane damage, whether 
caused by the wind or storm surge.
  H.R. 3121 also includes language to further encourage to my 
constituents on Long Island to purchase flood insurance. A recent study 
has shown the southern shore of Long Island would be flooded if a 
Category 1 storm were to strike the area. That flood zone pushes 
further north on with each intensifying category. The affected areas on 
Long Island are home to middle-class and businesses. Under H.R. 3121, 
the maximum coverage for a home increases from $250,000 to $335,000; 
for residential contents from $100,000 to $135,000; and for non-
residential properties from $500,000 to $670,000. These provisions will 
ensure that flood insurance participants on Long Island will be able to 
pick up the pieces and start over following a hurricane.
  The bill includes another little discussed provision that I strongly 
support. Most people don't realize that today their finished basement 
family or media room and its contents are not protected by flood 
insurance because that room is located below ground level. As more 
families add on to their homes rather than move to larger homes, 
basements are becoming another room, often more important than the 
traditional living room. H.R. 3121 allows optional coverage for 
improvements and personal property located in basements.
  Too many people who should be purchasing flood insurance have no 
protection. Some people they live too far from the coast. Others don't 
realize that their homes are in a flood plain and learn this fact, to 
their dismay, only after a flash flood destroys their residences. I am 
pleased that H.R. 3121 funds a program to help communities reach out to 
residents and encourage them to purchase flood insurance. I commend the 
gentlewoman from California (Ms. Matsui) who introduced this 
legislation in the 109th Congress.
  It is only a matter of time before a severe hurricane like the Long 
Island Express of 1938 impacts Long Island. This bill improves current 
insurance and should encourage more home owners to purchase and retain 
flood insurance. I encourage the House to pass H.R. 3121 and hope that 
the Senate also will act quickly to send this important legislation to 
the President for his signature.

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