Big ‘I’ Urges Congress to Avoid NFIP Lapse
By: Jennifer Webb
The NFIP is set to expire on Nov. 30, barring action by Congress. As such, this week, the Big “I” led a group of 26 organizations in sending a letter to congressional leadership urging immediate action to reauthorize the NFIP.
The NFIP must be periodically reauthorized. In the last year, the program has already seen seven stop-gap extensions and two brief lapses.
The Big “I” and others are currently advocating for Congress to extend the NFIP before the program expires, and to support a long-term reauthorization of a modernized program that would increase take up rates for flood insurance both in the NFIP and in the private market. A lapse could leave millions of Americans at risk, disrupt housing markets, and slow down recovery efforts related to Hurricanes Florence and Michael.
The Big “I” is hopeful that the NFIP will not see a lapse. But with Thanksgiving next week, the number of working days between now and Nov. 30 for Congress to consider an extension is running short. Additionally, Congress is set to recess until 2019 later in December and has a busy agenda that includes finding a path forward for government funding legislation prior to Dec. 7 to avoid a government shutdown.
While Congress is considering various legislative options to keep the NFIP operating, any substantial reforms to the program are almost certain to be pushed into 2019 for consideration in the new Congress.
Given the must-pass nature of the government funding legislation, one potential outcome is to attach a short-term NFIP reauthorization legislation to any funding bill or bills. Attaching NFIP reauthorization legislation to the government funding bill—or some other vehicle—could also result in a short lapse in the program.
Should the program lapse, the Big “I” encourages agents and brokers to communicate with any insurance companies they use to write NFIP policies on company-specific procedures. The Big “I” has created a one-page document that outlines resources available in the event of a lapse. Members must log in to view the document.
Jennifer Webb is Big “I” federal government affairs counsel.
