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Feb 08
Flood Insurance Reforms Stall

​In November, the U.S. House of Representatives passed H.R. 2874, “The 21st Century Flood Reform Act," by Rep. Sean Duffy (R-WI) to reauthorize the National Flood Insurance Program (NFIP) through September 2022 and make substantial reforms to the program.

Among other things, H.R. 2874 would reduce the amount of money that the government pays private insurance companies to administer the NFIP; adjust statutorily required premium increases for properties not at full risk rates; clarify that a private flood policy can satisfy the mandatory purchase requirement for flood insurance, including on FHA insured mortgages, and change the treatment of repetitive loss properties.

Multiple bills have been introduced in the Senate to reauthorize and reform the NFIP, though none have progressed beyond introduction.

Authorization for the NFIP was originally scheduled to lapse on Sept. 30, 2017, but because Congress had not yet come to an agreement on reforming and extending the program, it was temporarily reauthorized via a broader short-term deal to keep the government funded. Since then the government funding measure the NFIP reauthorized is tied to has seen intense debate and multiple short-term extensions. Debate over government funding even resulted in a brief government shut down, and lapse in NFIP authority.

As Congress has not yet announced an agreement in the Senate on reauthorizing and reforming the NFIP, the program is expected to see additional short-term extensions and potential lapses in authority pending a more permanent solution.

The Big “I" believes that the NFIP provides a vital service to people and places hit by natural disasters. As such, the Big “I" supports a long-term reauthorization of a reformed NFIP. The Big “I" also supports gradual development of the private market as a complement to the NFIP; and will continue to work with Congress and the Administration on flood insurance related issues.


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