Senate Banking Committee Releases Bill To Reauthorize Flood Insurance Program

WASHINGTON—Senate Banking Committee leaders have released a bipartisan bill that would reauthorize the National Flood Insurance Program until Sept. 30, 2023. Congress has until Oct. 1 to reauthorize the program, which provides flood insurance to at-risk homes.
 
The bill, the National Flood Insurance Program Reauthorization Act of 2017, was introduced by Senate Banking Committee Chairman Mike Crapo (R-ID) and Ranking Member Sherrod Brown (D-OH). It would, among other things, raise the NFIP's primary increased cost of compliance (ICC) coverage for a single property from $30,000 to $60,000. It would also give policyholders the option to purchase additional ICC coverage to a maximum of $100,000, NAFCU reported.
 
This legislation also attempts to gradually increase NFIP premiums, eventually bringing them closer to actuarial rates. It would require the administrator to start incorporating replacement cost value into the rates used by the NFIP, which would be fully phased in after three years, NAFCU said.
 
The bill, similar to a provision in the House bill on flood insurance reform, also has a requirement to update flood mapping procedures.
 
The House bill, facing bipartisan opposition from several lawmakers, is currently stalled in the House Financial Services Committee.
 
NAFCU said it has pushed for a number of improvements to the NFIP, including increases in coverage limits and caps on premiums and rates. The association supports long-term authorization for the program but has expressed concerns over proposals that would drastically increase NFIP privatization efforts.