PIA, Realtors, FEMA Push for Long-Term NFIP Renewal
Groups that have an interest in the uninterrupted availability of flood insurance coverage agree that Congress needs to make sure that authorization for the National Flood Insurance Program (NFIP) should not be allowed to lapse again.
PIA, the National Association of Realtors and the Federal Emergency Management Agency (FEMA) – which administers the NFIP – all agree that the program that provides over 95 percent of the flood insurance coverage in the United States needs meaningful reform and certainty.
A wrinkle developed when FEMA asked Congress to pass a two-year extension of the NFIP, much shorter than the five-year reauthorization that’s part of H.R. 1309, the comprehensive reform bill that has passed the full House and the Senate Banking Committee overwhelmingly. PIA responded by saying a two-year extension would only be viable if the Senate is unable to act on H.R. 1309 prior to the May 31 expiration of authorization for the NFIP. Initially, it was thought that timely action on H.R. 1309 would not be possible; but recently, there have been rumblings on Capitol Hill that indicate all hope may not be lost.
“PIA continues to advocate that the Senate move a comprehensive flood insurance reform bill with a five-year reauthorization,” said Mike Becker, assistant vice president of federal affairs of PIA National. “However, avoiding another lapse by securing a multi-year extension becomes even more critical as the scheduled May 31 expiration of the flood insurance program draws closer.” The NFIP has continued on short-term reauthorizations since its last long-term authorization, which expired in September 2008. The short-term extensions resulted in 53 days of temporary lapses in 2010. The NFIP was temporarily extended four times in 2011.
See how various industry groups are pushing for NFIP renewal: PIA, Realtors, FEMA Push for Long-Term NFIP Renewal (Ins & Financial Advisor 4/27/12)
Read more on the urgency of renewing the federal flood program: 2 Years Better Than Nothing, Industry Still Wants 5 Years (National Underwriter 4/24/12)