U.S Congress has approved a short-term extension for the government-backed National Flood Insurance Program (NFIP) for the tenth time in 15 months, authorising it until 31 May 2019.
It’s been a busy 2018 for the NFIP; hurricane Michael, which tore into the Florida Panhandle with high-end category four wind speeds in October, was estimated to have inflicted between $250 million and $750 million losses for the program.
A month prior to Michael’s landfall, hurricane Florence caused significant flooding as the slow-moving storm inundated areas of North and South Carolina with up to 40 inches of rain and 10-foot storm surges over a period of several days.
In addition, this year saw FEMA for the first time secure reinsurance for NFIP from the capital markets with the issuance of its $500 million FloodSmart Re 2018-1 catastrophe bond.
Long-term approval for the program expired on 30 September 2017 and lawmakers have since delayed a significant overhaul of the program, instead opting for ongoing stop-gap funding measures as attempts are made to resolve the program’s growing debt.
Louisiana lawmakers have reportedly pushed for longer-term extensions to the flood insurance program, hoping to provide families more stability as they await a longer-term funding solution. In a statement, Kennedy said 5 million Americans will benefit.
“I don’t have to tell anyone in Louisiana how important the National Flood Insurance Program is,” added Kennedy.
“Now we can work on long-term reforms. We can make the program sustainable without it becoming unaffordable.”
