Insurance and Housing Groups Urge Renewal of Flood Program Expiring September 30

0
40

The National Association of Mutual Insurance Companies, along with a grand coalition of other groups in the insurance, lending and housing industry, urges congressional leaders to avoid disruption of national program coverage. flood insurance by renewing the NFIP before its current license expires on September 30. .

In recent years, Congress has not been able to pass reform legislation or a long-term extension of the NFIP, but has instead passed a dozen short-term extensions. Last year, President Donald Trump signed a one-year extension passed by Congress just before the NFIP expired.

NAMIC, along with 18 other organizations, including America’s independent insurance agents and brokers, the National Association of REALTORS, and the Council for Affordable and Rural Housing, sent a letter to congressional leaders calling for an extension of the program. .

See also  Biden administration begins to assess climate risks in insurance and financial markets

“While it is widely accepted that a long-term reauthorization of a reformed NFIP is necessary, letting the program expire would be devastating for policyholders across the country who are still affected by COVID-19 and face a increasing severe flooding, ”the groups wrote in the letter. “Therefore, in the absence of any agreement to reform the program, we ask that you extend the program by September 30 to provide some continuity and certainty to the millions of policyholders who rely on a functioning NFIP.”

The NFIP currently offers $ 1.3 trillion in coverage through more than 5 million policies in the United States, but has been losing money for years and currently has $ 20.5 billion in debt. .

See also  Microsoft warns thousands of cloud customers about exposed databases: Reuters

The Federal Emergency Management Agency (FEMA) is currently preparing to implement the first major update to the NFIP pricing system in half a century under which Americans in coastal and flood-prone areas will pay a lot. more to insure their home. The new premiums will be based on a property’s value, flood risk, and other factors, rather than just the elevation of a property in a flood-prone area. They will go into effect on October 1, 2021 for the new policies and April 1, 2022 for the rest, FEMA said.

If the NFIP expired, policyholders and consumers would not be able to renew or obtain coverage, and home sales for which lenders require flood insurance coverage as a condition of the loan. mortgage contract could be delayed or canceled.

See also  Wells Fargo fined $ 250 million for 'unacceptable' breach of 2018 consent order

“NFIP is too important to too many Americans for Congress to forget; program renewal must be a priority, ”said Jimi Grande, senior vice president of federal affairs and policy at NAMIC. “We need our leaders in Washington to make sure that whatever happens with infrastructure or budget reconciliation, the NFIP will be there to protect Americans from losing everything to the floods.”

The subjects
Flood

Interested in Flood?

Receive automatic alerts for this topic.

LEAVE A REPLY

Please enter your comment!
Please enter your name here