The NFIP is set to expire on July 31, and if Congress does not act, the program will lapse.

A lapse of the NFIP, especially during the height of hurricane season, will leave millions of Americans at risk and disrupt housing markets, and may slow down recovery efforts in Texas and other states affected by the devastating 2017 hurricane season.

The Big “I” and other groups 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 flood insurance take-up rates in both the NFIP and the private market.

Earlier this week, the Big “I” led a group of 22 organizations in sending a letter to every member of Congress urging immediate action to reauthorize the NFIP. The Big “I” also plans to work with insurance agents and brokers across the country on additional advocacy efforts in the coming days.  

The NFIP must be periodically reauthorized. While the U.S. Senate passed a measure to extend the program through the end of the year as part of its consideration of the Farm Bill, and the U.S. House of Representatives passed legislation to extend the program for five years with significant reforms, both chambers have yet to agree on a consensus measure to keep the program operating after July. 

The Big “I” supported the Senate’s efforts for a six-month extension of the program but is neutral on the House bill, and opposes a measure in the bill that would negatively impact agent commissions.

Should the program lapse, agents need to be prepared. FEMA, which operates the NFIP, released a memorandum in 2017 outlining procedures to follow if the program lapses. The Big “I” worked with FEMA on the guidance.

The Big “I” encourages agents and brokers to reach out proactively to any insurance companies they use to write NFIP policies for company-specific procedures.

Jennifer Webb is Big “I” federal government affairs counsel.