MBA, Trade Groups Urge Congress to Pass Long-Term Flood Insurance Extension
Mike Sorohan email@example.com
With yet another deadline looming for the National Flood Insurance Program, the Mortgage Bankers Association and nearly two dozen other industry trade groups urged Congress to take action and pass a long-term program extension.
While the NFIP is subject to periodic reauthorization, in recent years efforts to reform the program have resulted in a series of deadlocks and lapses. Congress has yet to pass a long-term extension of the NFIP, resulting in a series of six stop-gap extensions and two brief lapses in 2017 and 2018. Without action from Congress, the program is set to expire yet again, on July 31, during the heart of the 2018 hurricane season.
"Americans deserve certainty and stability in the flood insurance marketplace to be able to protect their homes and loved ones," the trade groups said in the letter to House and Senate leadership. "A lapse of the NFIP, especially during the height of hurricane season, will leave millions of Americans at risk and result in severe disruption in the over 20,000 communities across the United States that depend on the NFIP."
Furthermore, the letter noted, a lapse in the NFIP could slow down recovery efforts in Texas, Louisiana, Florida, Puerto Rico and other states impacted by the devastating 2017 hurricane season by making it harder for disaster assistance recipients to satisfy flood insurance requirements.
"Flooding is the most common and costly natural disaster in the United States," the letter said. "[We] are working with Congress to enact a long-term reauthorization, while also supporting efforts to reform and modernize the NFIP and increase the number of properties insured against the peril of flood. Each of the undersigned organizations is committed to continuing this work; however, it is critical that in the meantime the NFIP remain available to those who need it."
Joining MBA in the letter:
American Bankers Association
American Insurance Association
American Land Title Association
The Association of State Floodplain Managers
Coalition for Sustainable Flood Insurance
The Council of Insurance Agents & Brokers
The Independent Community Bankers of America
The Independent Insurance Agents & Brokers of America
National Apartment Association
National Association of Home Builders
National Association of Insurance and Financial Advisors
National Association of Mutual Insurance Companies
National Association of Professional Insurance Agents
National Association of Realtors
National Flood Association
National Multifamily Housing Council
Property and Casualty Insurers Association of America
Reinsurance Association of America
U.S. Chamber of Commerce
Wholesale & Specialty Insurance Association