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PIA Encouraged By New Flood Insurance Reform Bill

PIA is encouraged by a new bill introduced in the House that makes key reforms to the National Flood Insurance Program (NFIP). The bill, tentatively...
April 28, 2010

PIA is encouraged by a new bill introduced in the House that makes key reforms to the National Flood Insurance Program (NFIP). The bill, tentatively titled the Flood Insurance Reform Priorities Act of 2010 (no bill number yet) and currently in discussion draft form, is scheduled for a mark-up - a drafting session - by the House Financial Services Committee on Tuesday April 27.

The new bill includes a five-year reauthorization of the NFIP, increases the coverage limits for policies issued under the program and does not offer wind coverage. PIA supports the five year reauthorization as well as increasing coverage limits and opposes adding wind coverage to the flood insurance program.

"PIA is very encouraged that Congress is finally acting on this," said PIA National Director of Federal Affairs Mike Becker. "The House Financial Services Committee is to be congratulated for moving forward with this bill." PIA also believes that expanding the NFIP's offerings to include commercial business interruption coverage would be a positive step.

Also slated for a mark-up is a bill PIA opposes, the Multiple Peril Insurance Act (H.R. 1264) introduced by Rep. Gene Taylor (D-Miss.) which would add wind damage coverage to the NFIP.

What It Means to Agents: After two years of short-term reauthorizations and two expirations, Congress is finally poised to consider reforms to the NFIP paired with a long-term reauthorization, which is necessary to return stability to real estate markets which were adversely affected by uncertainty. PIA supports the full five-year reauthorization in the draft bill, rather than a shorter reauthorization. It's time to deal with this.

Proposed NFIP Bill Would Extend Program 5 More Years  (National Underwriter 4/22)

PIA Urges Congress to Enact 5-Year NFIP Authorization (Miami Herald 4/20/10)

Group Urges Congress to Stop 'Havoc' of Short-term NFIP Extensions (Insurance & Financial Advisor 4/20/10)