House Bill to Restore NFIP Retroactively

Mississippi Republican Rep. Mike Ezell and Lousiana Democrat Rep. Troy Carter are making a bipartisan effort to retroactively restore the National Flood Insurance Program (NFIP). They have introduced H.R. 5848, the NFIP Retroactive Renewal and Reauthorization Act to the U.S. House of Representatives.

The bill — if unaltered and passed — will reauthorize the NFIP through 2026 and will backdate the coverage that expired during the federal government shutdown.

One of the issues faced by some policyholders is the 30-day grace period at the end of October. Lapsed policies under the Federal Emergency Management Agency (FEMA) Risk Rating 2.0, policyholders have to gradually transition to full-risk rates. So those policyholders could face higher rates and partial-risk assessments.

Carter said if Congress does not act on this — and soon — policyholders with flood losses could end up uninsured. “The lapse of the National Flood Insurance Program isn’t a partisan problem — it’s a people problem,” Carter noted. “Families shouldn’t lose their coverage or face higher premiums because of political gridlock.”

Source link: Insurance Journal — https://bit.ly/4icl973