This month, the House passed the tenth short-term extension of the National Flood Insurance Program (NFIP). The extension, H.R. 2578, sponsored by Rep. Maxine Waters will continue the program through September 30.
In the Senate, Senator John Kennedy has introduced two bills on the issue. The temporary extension ensures that the program avoids a lapse and affords time for a bipartisan compromise.
What this means for your business…
Flood insurance is required for a mortgage in more than 20,000 communities nationwide. A lapse in NFIP would affect more than five million policies currently in force across the nation. While there is a growing private market for flood insurance, millions of small business and homeowners currently depend on the NFIP to protect their property against flooding, the most costly and common natural disaster in the United States. Without a federal insurance program, more property owners would be uninsured and have to turn to the Federal government for taxpayer-funded disaster and rebuilding assistance after major floods.
- Reauthorizing and strengthening the NFIP so it is sustainable over the long run;
- Encouraging the development of a more robust private flood insurance market to offer comparable coverage at a lower cost than the NFIP;
- Providing federal assistance and resources for property owners to build to higher standards, mitigate the risk of flooding, and keep insurance rates affordable;
- More granularly pricing NFIP policies to better reflect the property’s specific risk but gradually phasing in increases over time; and
- Improving flood map accuracy, so fewer property owners have to file expensive appeals.