As the September 30 expiration date for the National Flood Insurance Program (NFIP) quickly approaches, members of Congress need to hear from agents urging them to act to prevent a lapse of the NFIP.
The history of NFIP extensions has been messy. The program was extended 17 times between 2008 and 2012, when the previous five-year reauthorization was signed into law. The NFIP has been subjected to 25 short-term extensions since September 30, 2017. Most recently, the NFIP was extended for one year, beginning in September 2022.
Congress’s inability to pass a long-term reauthorization has had substantial ramifications for policyholders and agents. The NFIP briefly lapsed three times in 2018 alone; unfortunately, even short lapses can negatively affect consumers. With Congress away for its August recess, it is important for agents to communicate the significance of this issue to members of Congress and urge them to prioritize the extension of the NFIP upon their return to Capitol Hill.
Lapses of the NFIP of any length are detrimental to consumers. When the program lapses, consumers cannot renew an existing policy or finalize the purchase of a covered property. While claims on existing policies continue to be paid during a lapse, policies involved in on–going real estate transactions may experience disruptions, especially in areas where the purchase of flood insurance is mandatory. In addition, consumers who experience flood loss during a lapse may not have their claims processed until the NFIP is reauthorized.
PIA strongly urges Congress to extend the NFIP for as long as possible and supports any legislation that will prevent a program lapse, be it a single or multi-year extension.
Send a message to your members of Congress urging them to extend the National Flood Insurance Program (NFIP) prior to its September 30 expiration. Click here to encourage your representatives to support an extension of the NFIP today!