Once passed by the House, the Senate will need to pass the bill as well. Insurers are hoping lawmakers take out a portion of the bill that removes anti-concurrent clauses from flood policies. “The recent series of expirations and temporary extensions is negatively impacting the market,” Robert Rusbuldt, Big “I” president and CEO, told the Insurance Journal. “The Big ‘I’ commends the House for passing this bill which is a step in the right direction to a long-term extension of the NFIP [National Flood Insurance Program] and includes much-needed reforms to the critical program.”

The NFIP is currently set to expire at the end of September once again. In the past, lawmakers have extended the program five years at a time which provides stability to the insurance marketplace. Although in the past year, Congress has begun extending the program for smaller periods like a month or six months, which has made it difficult for homeowners and those in the insurance industry. “This bill contains many provisions that PIA has consistently advocated,” PIA National Director of Federal Affairs Mike Becker told House Speaker Nancy Pelosi and Minority Leader John Boehner according to the Insurance Journal. “Perhaps most significantly, H.R. 5114 extends the flood insurance program through the end of 2015. This would finally end the uncertainty that has resulted from a series of short-term NFIP reauthorizations.”

Flood Insurance Program May Finally Be Extended is a post from: Peppercoin Insurance

• It would continue the program for five years until September 30, 2015.
• New rate maps for flood zones would be delayed. This would help homeowners facing higher insurance rates.
• The bill would also overhaul the program’s administrators so it can function more efficiently.

Democrat Maxine Waters chairs the subcommittee working on this issue and says they have figured out cost-saving methods which is important since the program has carried massive debt since the destructive 2004 and 2005 hurricane seasons. “The focus on NFIP should be on providing coverage for those vulnerable to natural disasters, not to subsidize the wealthiest Americans, so we are phasing out premium subsidies for second homes and vacation homes, which will save the program a lot of money,” Waters said in a statement according to Reuters. The House of Representatives Financial Services Committee approved the bill.

Insurance providers including Allstate, Travelers, Hartford Financial Services and Fidelity National Financial all have a big involvement in the National Flood Insurance Program. The program is administered by FEMA to provide flood coverage. They buy the coverage from about 90 companies that sell policies and collect premiums for the government. Those premiums are given to FEMA. “A long-term reauthorization of the NFIP is extremely important, especially for Americans living in flood-prone areas,” Blain Rethmeier, spokesman for the American Insurance Association, said in a Reuters report. The Independent Insurance Agents and Brokers of America, also known as Big “I”, issued a statement of support for the move. “The continued short term extensions of the NFIP have caused considerable confusion in the marketplace,” said Charles Symington, senior vice president of government affairs for the Big “I”. “We strongly support the Financial Services Committee’s efforts to pass a long term extension of this important program and hope that the full House and Senate will consider this legislation promptly.” 

Changes In Store For National Flood Insurance Program is a post from: Peppercoin Insurance

This delay has happened two other times in recent months because of political and funding delays. “I’m for continuing vital programs like flood insurance and I think we should use common sense and extend this necessary program without further increasing the federal debt,” said Sen. David Vitter to Houma Today, R-La. “Louisianians, Americans get this. Why can’t Congress?”

Congress will take up the legislation on April 12 when it returns to session. Standard homeowners insurance policies don’t cover flooding which is why the flood insurance program was created in 1968. It offers coverage from floods caused by hurricanes, overflow of rivers or lakes, rain storms, mudslides and snow melt.

Sale Of Homes Requiring Flood Insurance Treading Water is a post from: Peppercoin Insurance