The National Flood Insurance Program (NFIP) is set to expire on September 30, 2022, unless its authorization is extended by Congress.
The program’s most recent five-year reauthorization expired on September 30, 2017, nearly five years ago. Leading up to that deadline, the 115th Congress was unable to agree on reforms to the program. As a result, the NFIP briefly lapsed three times within a three-week period in early 2018. The NFIP has been subject to approximately 20 extensions of varying lengths since the 2017 deadline, and, unless Congress acts, its current extension will expire September 30.
Every short-term extension brings with it the chance for the program to lapse. When the NFIP lapses, consumers are unable to renew existing policies or finalize the purchase of covered properties. Claims continue to be paid on existing, in-force policies, but consumers engaged in ongoing real estate transactions may experience disruptions in those processes, especially if they are purchasing a property in a mandatory purchase area, where federal law requires flood insurance. Plus, if a flood loss occurs during a lapse, some claims may not be processed until the program is reauthorized. Prior NFIP lapses are estimated to have disrupted over 1,000 home sales per day, and, of course, the longer the lapse, the greater the disruption.
PIA is urging Congress to pass an extension of the program for as long as possible, either as a stand-alone measure or as part of a federal funding continuing resolution (CR). PIA strongly supports legislation that would extend it for one year until September 30, 2023, but encourage any measure that prevents it from lapsing.
PIA has been encouraging congressional offices to extend the NFIP before it expires and to provide as long an extension as possible. PIA has also issued an action alert encouraging PIA members to ask Congress to extend the NFIP for as long as possible.