Reinsurance News

NFIP extended by two-weeks

31st May 2019 - Author: Luke Gallin

The House of Representatives recently passed a two-week extension of the National Flood Insurance Program (NFIP), which was set to expire on May 31st, 2019.

Flooded sign image via 89.3KPCCThe two-week extension enables the NFIP to continue issuing flood insurance policies at the start of the Atlantic hurricane season, which officially starts on Saturday June 1st, 2019.

U.S. lawmakers had previously failed to pass a disaster aid bill including a federal flood insurance reauthorisation provision, but the House has now passed a separate two-week extension to the NFIP’s expiration date, which is now set for June 14th, 2019.

The National Association of Mutual Insurance Companies has expressed disappointment at only a two-week extension, urging Congress to pass a long-term reauthorisation of the NFIP.

“With the start of the 2019 hurricane season just days away, that Congress has been able to pass only a two-week extension of the NFIP is disheartening, as it needlessly creates uncertainty for policyholders across the nation.

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“And as we have seen with the recent devastating flooding in the Midwest, the time has never been more critical for Congress to provide long-term stability for policyholders who have unfortunately been strung along from one short-term extension to the next,” said Jimi Grande, senior vice president of government affairs for NAMIC.

FEMA announced the renewal of the NFIP reinsurance program in January, followed by changes to the pricing structure of the NFIP in April, a move that analysts warned could increase costs for some homeowners.

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