Insurers Push for NFIP Extension Before Sept. 30 Deadline
The National Flood Insurance Program (NFIP) has a long history of frequent expirations due to Congress failing to make a decision in time, so insurers are taking it upon themselves to remind them before it’s too late. In case lawmakers aren’t sure about then the program will expire this time, insurance companies have their bullhorns ready to shout: Sept. 30!
NFIP Expiration Approaching and Insurers Don’t Want to Miss It
According to a new report from the P&C National Underwriter, insurance companies have had enough of Congress allowing the National Flood Insurance Program to expire. The next program expiration is set for Sept. 30, so instead of allowing it to expire as usual, the property and casualty insurance industry (home insurance, auto insurance, flood insurance) plans to battle for certainty with the program shortly after Congress returns from Labor Day break on Sept. 13.
Congress had already planned to take steps to extend the program for five years, but it is still debating whether to include windstorms, as well as what other changes should be made to make it more effective.
NFIP Is Losing Insurers and In the Red
Some might say that FEMA and the NFIP are lucky insurers are going to bat for secure a long-term extension, especially since some private insurers are pulling back from the program due to its ongoing problems.
State Farm Mutual Insurance, which was the largest provider of flood insurance for the program, already pulled out this year. Many others are fed up with the constant expirations that leave customers without a way to make flood insurance claims.
Also, because the NFIP is in the red, insurance companies are finding they don’t often receive the reimbursement from the government they are due in a timely fashion after paying out a claim to a customer.
To remind lawmakers of the expiration, the P&C industry has already sent out a letter to Congress. However, with campaigning for November midterm elections and other obligations on their minds, it’s possible that we could see another expiration before the program is extended for the long haul.