The House is expected to vote Thursday on a flood insurance reauthorization bill. The bill — which the American Bankers Association supports — strikes a compromise between groups in Congress advocating for continued levels of affordability for current National Flood Insurance Program participants and those seeking to put the program on a more sustainable financial footing by reducing payouts for properties with repetitive losses.
The bill includes numerous elements long supported by ABA, including a five-year reauthorization period extending to 2022 — providing long-term stability for the program. It also includes a measure promoting the development of a robust private flood insurance market, an opt-out of mandatory coverage for commercial properties, the use of replacement cost when calculating NFIP premiums and the ability for private lenders to require flood insurance even when properties are not in a flood hazard area.
While ABA supports the bill overall as an effort to bring stability to the NFIP, the association continues to work closely with congressional leaders to improve the final bill. For more information, contact ABA’s Joe Pigg.