The National Flood Insurance Program (NFIP) expires after September 30, 2024, and in a letter to Congressional leadership this week, PIA urged Congress to prevent a lapse and extend it for as long as possible. To that end, we have endorsed a bill introduced by Senator John Kennedy (R-LA), S. 4772, the NFIP Extension Act of 2024. This would provide for a “clean”, one-year extension of the NFIP.
If Congress allows the NFIP to lapse, consumers will be unable to renew existing policies or purchase new ones. Claims may be paid on losses associated with existing, in-force policies, but only for policyholders who incur losses before a lapse begins. 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 associated with those losses may not be processed until the program is reauthorized. Prior NFIP lapses are estimated to have delayed the sale of over one thousand homes per day, and the longer the lapse, the more widespread the disruption.
PIA supports a long-term reauthorization of the program with needed reforms. However, at this late stage, we urge the passage of a clean extension of the NFIP to provide stability to consumers and other stakeholders and for the security of the American economy writ large.
This legislation would extend the NFIP to September 30, 2025.
Click here to send a message to your Senators urging them to support this bill and extend the NFIP.