The House Financial Services Committee advanced two different bills last week that re-authorize and reform the National Flood Insurance Program (NFIP), which is set to expire on September 30, 2017.
The committee passed the NFIP Policyholder Protection Act of 2017 (H.R. 2868), sponsored by Rep. Lee Zeldin
(R-NY) and the 21st Century Flood Reform Act of 2017 (H.R. 2874) sponsored by Rep. Sean Duffy (R-WI).
The Zeldin bill, which passed 53-0, would protect NFIP policyholders from unreasonable premium rates and require FEMA to conduct a study to analyze the unique characteristics of flood insurance coverage of urban properties.
“I’ve heard time and again from homeowners in my district who are frustrated with the process. More can and must be done to protect homeowners’ access to affordable insurance, and improve the way claims are processed so that policyholders aren’t stuck dealing with bureaucracy and red tape after their property is damaged by a flood,” Zeldin said. “We also must shift the focus toward mitigation so that there is an incentive for homeowners and communities to take proactive steps to protect against flood damage. Despite homeowners doing the right thing and elevating or renovating their home to protect their property, many have not seen a return on their investment in the form of lower NFIP premiums. The NFIP Policyholder Protection Act would ensure that preparedness is a critical focus to protect life and property.”
The Duffy legislation would enhance the development of more accurate estimates of flood risk through new technology and better maps; increase the role of private insurance providers in the market, and provide for alternative methods to insure against flood peril. It passed the committee by a vote of 30-26.
“We cannot continue to call on the American taxpayer to bailout a program that is currently drowning in $25 billion of red ink and suffers a $1.4 billion annual actuarial deficit,” Financial Services Committee Chairman Jeb Hensarling (R-TX). “These bills put the National Flood Insurance Program on a path toward actuarial soundness where all will be protected, no one will be denied a policy, all will benefit from competition, the NFIP will be sustainable, and the national debt clock will spin a little less rapidly.”
The committee will reconvene on June 21 to consider the remaining four bills to reauthorize the NFIP.