House vote prevents NFIP lapse, pending Senate approval
The House budget bill would grant the NFIP — set to expire Sept. 30 — its 16th short-term extension since 2017.
With a House vote, the National Flood Insurance Program (NFIP) has again avoided a lapse in funding, receiving its 16th short-term extension since 2017.
This week, the House of Representatives voted to extend the NFIP through Sept. 30, 2021, as part of a measure to fund the federal government through December 11.
Insurance industry groups applauded the House vote ahead of the NFIP’s upcoming expiration on Sept. 30. In published statements, the Independent Insurance Agents & Brokers of America (the Big “I”) and the National Association of Professional Insurance Agents (PIA National) urged the Senate to swiftly approve the spending bill and avoid a lapse in funding the NFIP, set to expire next week.
Industry reactions
In a statement, Jon Gentile, vice president of government relations at PIA National, thanked the House for including a one-year extension of the NFIP in its budget legislation, commenting on its importance during a busy 2020 hurricane season.
“PIA National has been working throughout the summer with policymakers on extending the NFIP for as long as possible. This is particularly important given that 2020 has been one of the busiest hurricane seasons on record. Now is not the time for policyholders to be uncertain about their flood coverage,” Gentile said.
Charles Symington, Big “I” senior vice president of external, industry & government affairs, urged the Senate to approve the House budget bill in a statement. He also reinforced the need for a long-term reauthorization of “a modernized program that would increase take-up rates for flood insurance both in the NFIP and in the private market.”
“A lapse in the NFIP could impact the ability of the program to promptly pay claims if there is a major flooding event, delay recovery efforts related to catastrophic storms, and disrupt real estate markets across the country,” Wyatt Stewart, Big “I” assistant vice president of federal government affairs, said in a statement.
“While we appreciate that this legislation provides needed certainty for the next year, it is imperative that Congress finally pass a longer-term extension of a modernized NFIP in 2021.”
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