Last month, Louisiana Sens. Bill Cassidy (R) and John Kennedy (R) introduced S. 1015, a bill to extend the National Flood Insurance Program (NFIP) until December 31, 2026. PIA strongly supports this legislation, which would provide much needed certainty to the NFIP while Congress works towards a long-term reauthorization.

In 2017, more than seven years ago, the NFIP’s most recent five-year reauthorization expired. 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 the end of the 2017 fiscal year, the NFIP has been subject to 33 extensions of varying lengths, none longer than one year.  Its current authorization will expire on September 30, 2025, during the peak of the Atlantic hurricane season.

NFIP lapses of any length are disruptive to consumers. When the program lapses, consumers cannot renew existing policies or purchase new ones. Claims may be paid on losses associated with existing policies, but only for policyholders whose losses occurred before the lapse began. Those who experience a flood loss during a lapse may not be so lucky; claims on those losses may not be processed until the NFIP is reauthorized. Previous NFIP lapses are estimated to have disrupted the sales of over a thousand homes a day, and the longer the lapse, the greater the disruption.

PIA strongly supports S. 1015 because it will give policymakers the time to ultimately pass a long-term NFIP reauthorization that includes key reforms and recognizes the essential role independent agents play in delivering the program to consumers. PIA appreciates the leadership demonstrated by Sens. Cassidy and Kennedy in introducing S. 1015 and looks forward to working together towards a long-term reauthorization of the program with needed reforms.