As the March 22 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. In 2017, the NFIP’s last five-year reauthorization expired. Since then, the NFIP has been subject to 29 short-term reauthorizations, sometimes lasting for only weeks at a time.
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 facing another potential lapse of the program, 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.
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. Claims on existing policies that arise from a loss suffered before a lapse will continue to be paid. However, those who experience a flood loss during a lapse may not have their claims processed until the NFIP is reauthorized. Policies involved in ongoing real estate transactions may experience disruptions, especially in areas where the purchase of flood insurance is mandatory.
PIA strongly urges Congress to extend the NFIP for as long as possible and supports any legislation that will prevent a program lapse.
Click here to send a message to your members of Congress urging them to extend the NFIP for as long as possible.