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Hearing on NFIP Slated, Reauthorization Bill Possible

A hearing has been scheduled March 9 in the House on the National Flood Insurance Program, amid reports that a bill will be introduced providing...
March 1, 2011

A hearing has been scheduled March 9 in the House on the National Flood Insurance Program, amid reports that a bill will be introduced providing for a five year reauthorization of the program. The hearing has been called by Rep. Judy Biggert (R-Ill.) chair of the Insurance, Housing and Community Opportunity Subcommittee of the House Financial Services Committee.

The new bill would be more favorable to the insurance industry, eliminating some provisions that were included in last year's "Flood Insurance Reform and Priorities Act of 2010" but would mirror that bill. Introduction of such legislation and support from Chairman Biggert would be significant, since other legislation has been introduced which would eliminate the NFIP altogether.

In a statement on February 7 and in meetings with members of Congress this month, PIA has reaffirmed its support of the NFIP, along with needed reforms.

"The Flood Insurance Reform and Priorities Act of 2010 provided for much-needed reforms to the NFIP, including increasing NFIP coverage limits, phasing in actuarial property rates and phasing out premium subsidies for severe repetitive loss properties, second and vacation homes, and policyholders who voluntarily allow flood coverage to lapse," said the PIA statement, which also called for a five-year reauthorization. "In addition, it made business interruption and additional living expense coverages available at actuarial cost. These are elements that should be included in any new legislation."

There is broad, bipartisan consensus that the National Flood Insurance Program is a vital component of America's economic prosperity that provides affordable protection to homeowners and business owners. The NFIP has been protecting America from flood risks since its inception over 40 years ago. PIA strongly supports the NFIP.

Click here to read PIA Statement Reaffirming Support for Reforms to NFIP (2/7/11)

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