House Passes Flood Insurance Renewal
The Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program (NFIP) was designed to reduce the impact of flooding on private and public structures and alleviate the financial burden caused by flood damage. The program was set to expire on December 8th amidst ongoing negotiations in Congress. This month, the House of Representatives passed the bill with a 237-189 vote. With the new reauthorization, the bill, with changes, will remain intact for the next five years.
This Fall’s string of destructive hurricanes brought the importance of the flood insurance renewal to the forefront. Opponents of the NFIP argued that it would make flood insurance less affordable by competing with private companies. Tom Glassic, a consultant who previously served as senior insurance counsel to the Financial Services Committee, explained “No legislation currently pending before the 115th Congress addresses the underlying, core challenge facing the NFIP — the reality that the NFIP was not designed to address catastrophic losses.”
Proponents contend that not renewing the bill would allow private insurers to choose the least risky properties to cover. Since the hurricanes hit, the NFIP has exceeded its $30 billion borrowing limit and borrowed another $6.1 billion from FEMA. The bill now advances to the Senate, where the NIFP Reauthorization Bill, S. 1571 sponsored by Senator Mike Crapo, Chair of the Senate Committee on Banking, Housing, and Urban Affairs.
If you or someone you know needs to file a claim with the National Flood Insurance Program visit FEMA.gov.
Sources: FEMA, Politico