Flood

On Monday, FEMA announced significant changes to the way the NFIP will charge homeowners for flood insurance risks.

On Wednesday, Chris Heidrick, chair of the Big “I” Flood Insurance Task Force, testified before the U.S. House of Representatives Financial Services Committee on reauthorization of the NFIP.

The budget proposal includes $26 billion in cuts to the FCIP and proposed means-testing for the NFIP.

Earlier this week, the Big “I” and other stakeholders sent a letter to FEMA asking for clarification on when consumers can receive a refund for unearned premiums if they cancel an NFIP policy mid-term in favor of a private policy.

Last Friday, federal banking regulators issued a new rule outlining when lenders are required to accept private flood insurance to satisfy mandatory purchase requirements.

FEMA reversed its decision not to issue new or renewal policies or make changes to existing policies during the government shutdown.

Further guidance from the NFIP is expected, but for the time being, the NFIP will not issue new policies or make changes to existing policies.

If legislation to extend the NFIP fails to garner final approval at the last minute, it is unclear what will happen.

Earlier today, Congress passed a two-week extension of government funding to prevent a partial government shutdown from occurring on Dec. 7. The deal gives Congress time to continue negotiations on funding and other issues, including extending the NFIP.

Late last week, Congress extended the NFIP through midnight this Friday, Dec. 7. However, due to the funeral for former President George H.W. Bush, Congress is not expected to vote on a long-term funding bill or a stand-alone measure to further extend the