NFIP Avoids Lapse as Industry Rallies for Reforms
On the heels of a two-week extension meant to keep the National Flood Insurance Program (NFIP) afloat past its May 31 expiration, the U.S. Congress this week passed a longer – albeit still short-term – program extension as part of a broader disaster relief bill. H.R. 2157 extends the NFIP through Sept. 30, 2019, making it the 12th consecutive, short-term, no-change program extension since the NFIP originally came up for renewal in September 2017.
Despite the four-month reprieve, stakeholders continue to lobby lawmakers to come together in agreement on a long-term program reauthorization, citing the marketplace instability and uncertainty created by multiple, down-to-the-wire short-term extensions.
The independent insurance producer community continues to advocate for a long-term extension of a reformed and modernized NFIP and currently supports H.R. 1666. Sponsored by Reps. Kathy Castor (D-FL) and Blaine Luetkemeyer (R-MO), the legislation would clarify that private flood insurance can satisfy NFIP continuous coverage requirements. This ensures that if consumers leave the NFIP for the private market and conditions change such that those consumers must return to the NFIP, they can do so without penalty.