Congress has until Sept. 30 to reauthorize the National Flood Insurance Program (NFIP), the federal government-run flood insurance market.
Flood damage is not covered by homeowner’s insurance. Consumers who want to protect their property must purchase a policy through the NFIP.
Washington state Insurance Commissioner Mike Kreidler the National Association of Insurance Commissioners (NAIC) are urging Congress to reauthorize the NFIP prior to its expiration on Sept. 30. Reauthorization would help avoid short-term extensions and program lapses that create uncertainty in the insurance, housing and lending markets.
Kreidler and the NAIC support the Flood Insurance Market Parity and Modernization Act, which also facilitates the growth of the state-regulated private flood market.
“State insurance regulators support this legislation because it provides consumers with more options for coverage which could lead to more affordable prices,” said Kreidler.
In recognition of the growing private flood market, the NAIC will start collecting information from insurers about their private flood insurance activity. This data will provide the OIC with a comprehensive overview of the size of the private flood insurance market and insights into the market as it grows.
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