On August 29, PIA sent a letter to congressional leaders asking that they reauthorize the National Flood Insurance Program (NFIP) beyond its current September 30 expiration date and for as long a period as possible.
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’s most recent five-year reauthorization expired in 2017, and, in advance of that deadline, the 115th Congress was unable to agree on NFIP reforms. As a result, the program briefly lapsed three times. Since 2017, the NFIP has been subject to 25 extensions of varying lengths, but none has been longer than one year. Without Congressional action, the program will expire on September 30, 2023.
If Congress allows the NFIP to lapse, consumers will be unable to renew existing flood insurance policies or purchase new ones. Claims will be paid on existing, in-force policies, but only for losses incurred before the lapse began. During a lapse, consumers engaged in real estate transactions may experience disruptions, with sales of homes in mandatory purchase zones most likely to be delayed indefinitely. If flooding events occur during a lapse, claims may not be processed until the program is reauthorized. Prior NFIP lapses are estimated to have caused disruption in over one thousand home sales per day, and the longer the lapse, the greater the disruption.
PIA supports a long-term reauthorization of the program with needed reforms, like investments in agent training, updated mapping, and a means-tested affordability program. However, Congress needs time to deliberate the many proposals that have been under consideration thus far this year. We are urging Congress to approve an extension of the NFIP for at least a year, if not longer.
Earlier this month, PIA created an action alert for PIA members to urge their elected representatives to prevent a lapse of the NFIP. If you have not already done so, send a message to your members of Congress urging them to reauthorize the NFIP before its September 30 expiration. Click here to encourage your House member and Senators to support an extension of the NFIP today!