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Lawmakers support NFIP reauthorization, extension
During a House Financial Services Subcommittee on Housing and Insurance hearing Friday on flood insurance coverage, lawmakers overall offered support for extending and reauthorizing the National Flood Insurance Program (NFIP). NAFCU has supported the long-term reauthorization and continued modernization of the NFIP.
The hearing focused on regulatory hurdles and barriers to flood insurance. Lawmakers discussed the need to balance affordability with accurate risk assessments, the potential to open the market to private insurers, and concerns related to insurance premiums and denied coverage.
There was broad bipartisan support for reauthorizing the NFIP, and the subcommittee is expected to hold a separate hearing soon focused solely on the program and legislation to authorize it through 2024.
NAFCU has long supported legislation that would reauthorize the NFIP and improve the financial solvency of the program to maintain market stability. The association has, however, cautioned against raising annual premium rates too quickly and flagged risks that would come with a lapse in the program.