Congress Votes to Extend the NFIP Until December 20
The month-long extension has spurred frustration by some in the industry who want Congress to act on more long-term NFIP reform.
Nearing the eleventh hour of the National Flood Insurance Program’s (NFIP) expiration at 11:59 p.m. on Nov. 21, 2019, Congress voted 74-20 to extend the program until Dec. 20.
The short-term extension marks the fourteenth time the program has been renewed since 2017.
Now, lawmakers will have more time to decide on a number of bills meant to reform the NFIP and reauthorize the program through September 2024.
One measure up for consideration is S. 2187, sponsored by Sen. Bob Menendez (D-N.J.), and its companion measure, H.R. 3872, sponsored by Rep. Frank Pallone Jr. (D-N.J.), which would authorize a long-term extension of the NFIP, fight insurance fraud, lower premiums and establish other reforms.
The Independent Insurance Agents & Brokers of America (the Big “I”) thanked Congress for their action to extend the NFIP — even for just the short-term.
“Although it is unfortunate that we must continue to rely on short-term extensions of the NFIP, the Big ‘I’ thanks the Senate for passing the government funding legislation, which includes an extension of the NFIP through Dec. 20,” Charles Symington, Big “I” senior vice president of external, industry and government affairs, said in a statement. “The House had previously passed the same legislation, and we now urge President Trump to quickly sign it into law to avoid an expiration of the NFIP. A lapse in the NFIP would be devastating to the more than 5 million policyholders and countless others who depend on the program. This short-term extension continues to give Congress additional time to build consensus on common-sense reforms to the NFIP and to consider policies to help more property owners obtain flood insurance coverage through the NFIP and the private market. The Big ‘I’ looks forward to continuing to work with Congress to enact a long-term NFIP reauthorization.”
In addition, the National Association of Mutual Insurance Companies (NAMIC) voiced slight frustration over Congress’ inaction to pass long-term NFIP reform.
“Once again Congress has kicked the can down the road when it comes to the National Flood Insurance Program, and once again flood insurers and their policyholders are left to wonder if the program will be allowed to lapse just weeks from now because of congressional inaction,” said NAMIC’s Matt Brady, senior director, advocacy communications, in a statement.
“The House Financial Services Committee in June voted unanimously to pass bipartisan legislation that would provide the stability of a five-year reauthorization as well as long-overdue reforms to help policyholders,” he continued. “Congress should send this bill to the president immediately. Keeping the program running in fits and starts helps no one; it’s time for Congress to get serious about helping those at risk of flooding by passing the House NFIP reform and reauthorization.”
The National Association of Professional Insurance Agents (PIA National) also issued a statement on the latest program extension.
“While this extension of the NFIP is appreciated because it avoids a lapse in the program, it is frustrating for agents and NFIP policyholders that Congress is yet again passing a last-minute, short-term extension of the NFIP, guaranteeing that these stakeholders will return to the brink of lapse in a mere four weeks,” said Jon Gentile, vice president of government relations of PIA National, in a release. “Months ago now, the House Financial Services Committee unanimously passed a bipartisan, five-year reauthorization of the NFIP that includes important reforms.”
“The bipartisan support for the House NFIP legislative package is largely unheard of in the current political climate,” Gentile said. “This legislation should be brought to the House floor and passed and then be considered by the Senate as soon as possible. Never-ending short-term extensions cause confusion and ambiguity for NFIP policyholders, and they are disruptive to the market. The program needs reform, and the House NFIP legislative package includes it. On behalf of consumers and independent agents alike, we implore Congress to act now.”
The bill will now head to President Trump, who has indicated his intentions to sign the bill into law.