FEMA Warns FL Gov Rick Scott If He Signs New Law, Homeowners Will Lose Flood Insurance

Tallahassee, Fla. -

FEMA has sent a written letter to Florida Gov. Rick Scott (R) saying that if he signs House BIll 503, passed by the Florida Legislature, that potentially millions of homeowners and businesses across the state will lose their flood insurance. The letter was written by FEMA Regional Administrator Major May.

The bill, in part, would allow local authorities to issue new building permits without regard to state or federal guidelines, notice or approval. The law would be violation of National Flood Insurance Program (NFIP) rules according to the FEMA letter, and this would force about 2 million flood policies in Florida to be canceled or not renewed.

FEMA is concerned that leaving other agencies like FEMA out of the loop would give it no say over development in flood prone areas, a violation of National Flood Insurance Program rules, according to CBS. The NFIP is the only insurance provider of flood insurance in the United States.

Complicating it further, home sales could be stifled because new mortgage loans usually require flood insurance for homes in flood risk areas. Without the NFIP, that insurance could not be issued, which likely will stop the loan process.

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