What It Means: Today, the U.S. Senate voted 86 - 12 in favor of reauthorizing the National Flood Insurance Program (NFIP) through hurricane season until November 30th, 2018. The program must be periodically renewed by congress, and was set to expire at midnight on July 31st. The House passed the legislation on July 25th. Big I supports the reauthorization of the NFIP.
Five million property owners rely on the NFIP to protect their livelihood. "A lapse in the NFIP during the height of hurricane season could impact the ability of the program to promptly pay claims if there is a major flooding event, delay recovery efforts related to the catastrophic 2017 storm season and disrupt real estate markets across the country." said Jennifer Webb, Big I Counsel for Federal Affairs. "The Big 'I' supports a long-term extension of a modernized NFIP that would increase take up rates for flood insurance, both in the NFIP and in the private market."
Furthermore, a lapse would prevent borrowers from obtaining flood insurance to close, renew, or increase loans secured by property in Special Flood Hazard Areas. When the NFIP lapsed in June 2010, an estimated 1,400 home closings per day were delayed or canceled.
What's Next: President Trump is expected to sign the legislation into law. However, the four-month reauthorization is only a temporary solution.
Big I New York Has Your Back: The Big I and our members actively lobbied members of congress to reauthorize the NFIP. We will continue to advocate for a long-term solution to this issue, and ensure that reforms to the NFIP do not negatively impact our members.