Another Reprieve for NFIP

Late yesterday both houses of Congress passed a continuing Resolution which provides for a 30-day extension of the National Flood Insurance Program. The program is now set to expire on Dec. 16, 2011.

The latest extension comes amid a flurry of activity surrounding the NFIP. Earlier this week a bipartisan group of senators expressed concern with a provision in the Senate version of the Flood Insurance Reform and Modernization Act of 2011. The bill passed the House in July but has thus far been bogged down in the Senate.

Tom Santos, VP of federal affairs at the American Insurance Association (AIA), expressed gratitude the NFIP isn’t going to lapse, but noted that the extension was the third short-term extension in as many months. 

“More certainty is needed and as such, AIA encourages Congress to pass a long-term extension with meaningful reforms that aim to strengthen the program,” Santos said.  “Necessary reforms include movement toward risk-based premiums and reduced price subsidies. The 5.6 million policyholders dependent upon the NFIP for their protection against floods deserve the peace of mind that a long-term extension of the program will provide.”