Flood Insurance Program Yet Again on Brink of Expiration

The National Flood Insurance Program (NFIP) is on the verge of lapsing yet again unless Congress acts to extend it before midnight December 20th.

There are real consequences if the NFIP is permitted to lapse. While the Federal Emergency Management Agency (FEMA) would still be able to pay the claims of current policyholders, they would not be allowed to sell or renew policies. A lapse would also severely impact home closings for mortgages on homes requiring flood insurance.

The NFIP is currently on its 14th short-term extension since its last long-term authorization expired in 2017. This is an ignominious record. These nonstop short-term extensions are unnecessary. In June 2019, the House Financial Services Committee unanimously passed a long-term reauthorization of the program with needed reforms, which PIA National helped develop and strongly supports.

Unfortunately, this legislation has stalled since then. Congressional delegations from the East Coast and Gulf Coast regions are concerned about the potential for rate increases for their constituents who have flood insurance. These members have actively worked to delay the House NFIP legislation. Their concerns are shared by Senators from the same regions who have offered legislation that includes a provision that would likely result in a deep cut to NFIP commissions for insurance agents.

PIA National supports preventing a lapse December 20th by extending the NFIP for as long as possible. However, it’s also important to break the pattern of continually limping from one short term extension to another. To that end, PIA National supports efforts to extend the NFIP for a year or more, to provide sufficient time to convince the members who are stalling progress on a long-term reauthorization to support the House NFIP legislation.

Please see and send this action alert asking Congress to avoid a lapse of the NFIP and to extend the program for as long as possible.