Congress must periodically renew the NFIP's statutory authority to operate. On Dec. 21, 2018, the President signed legislation passed by Congress that extends the National Flood Insurance Program (NFIP) authorization to May 31, 2019.
On Tuesday, the US House of Representatives voted and passed a bill to give a short extension on NFIP through Sept. 30 – the end of the fiscal year
The current NFIP program keeps getting extended with short-term extensions. We watched Congress in very similar extensions (at the last minute) in 2018 as well. The reason is apparently to buy more time while sponsors work to complete on a long-term, proposed bipartisan compromise.
Steve Scalise (R-La.) Praised the passage and stressed the importance of the program remains up and running ahead or hurricane season.
While these short-term patches are necessary to guarantee certainty for policyholders, we must do more. I will continue working with members on both sides of a long-term reauthorization of NFIP that focuses on affordability, improved mapping and mitigation, protects taxpayers, and encourages more choices so families can have options when buying flood insurance.
The Senate signaled Tuesday's closing in on a deal on disaster relief. It officially remains unclear whether it will include an extension of the NFIP, but I would expect something on flood.
What does this mean for policyholders?
Perhaps the best advice for someone who is unsure is to buy the flood policy. It's May – an important time of year. Hurricane Season has not started and it's time to buy flood insurance if you would like a little more piece of mind for your home or small business. Floods have occurred in the strangest places in the last five years. Whether you are coastal or not, whether you have a mortgage or not, I strongly encourage the purchase of a flood insurance policy. You will be impacted by two perils and will be impacted by the peace of mind.
Once we know more plans from Congress, we will post an update.