House committee starts flood insurance reauthorization process

The House Financial Services Committee kicked off its efforts to reauthorize the National Flood Insurance Program before it expires Sept. 30.

Hearing: The panel’s Subcommittee on Housing and Insurance held a hearing focused on how to promote private flood insurance and improved coverage in areas outside federally designated hazard areas. Noting that the NFIP accounts for roughly 95% of household policies, attendees discussed legislation that would ensure consumers who leave the NFIP for the private market can return to the NFIP without penalty.

NFIP Extension: Congress last year passed an ICBA-supported NFIP extension as part of its end-of-year omnibus spending bill. In a letter to congressional leaders during last year’s debate, ICBA advocated an immediate extension as well as a long-term NFIP authorization.

ICBA View: In a separate comment letter to the Federal Emergency Management Agency last year, ICBA laid out its suggestions to strengthen the NFIP, such as updated flood mapping, higher standards for certain structures that perform critical actions, and incentives to mitigate repetitive flood losses. ICBA also supports efforts to increase the role of private insurers in the flood insurance market.