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PIA Applauds House Committee for Passing 5-Year NFIP Reauthorization

The House Financial Services Committee approved a bill on April 27 that would reauthorize the National Flood Insurance Program (NFIP) for five years and make...
May 4, 2010

The House Financial Services Committee approved a bill on April 27 that would reauthorize the National Flood Insurance Program (NFIP) for five years and make other key reforms to the program. PIA National issued a press release applauding the committee action.

The Flood Insurance Reform Priorities Act of 2010 (H.R. 5114) phases in actuarial property rates, phases out premium subsidies for second and vacation homes, increases coverage limits and makes business interruption and additional living expense coverages available at actuarial cost. The bill also delays implementation of new rate maps for flood zones so that homeowners newly included in a flood zone will not face an immediate new insurance cost.

"The reauthorization combined with key reforms will restore stability in the market," said PIA National President-elect Brian Marino, co-chair of the association's natural catastrophe working group. "We are pleased that the committee opted to provide for the full five-year extension as we recommended, rather than adopting a shorter reauthorization. We urge the full House and Senate to follow suit and act on this legislation promptly."

PIA opposes a separate bill, the Multiple Peril Insurance Act (H.R. 1264), which would add wind damage coverage to the NFIP, also was approved by the House Financial Services Committee on April 27. PIA believes that combining the two perils in the NFIP would cause coverage confusion and spur litigation.

PIA Applauds Vote to Extend NFIP 5 Years (PIA 4/28/10)

Flood Insurance Bills Clear Committee (National Underwriter 4/28/10)

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