FEMA comments on National Flood Insurance Program reauthorization issues
- Published: Wednesday, 21 November 2018 09:40
FEMA has issued a statement about the US National Flood Insurance Program (NFIP), as the current statutory authority granted to NFIP expires at 11:59 p.m. on November 30, 2018. The statement reads as follows:
“The Administration continues to work with our congressional colleagues to discuss the importance of NFIP authorization. FEMA is confident Congress will vote to reauthorize this program so individuals, families, businesses, and communities can purchase insurance to protect their homes and businesses from flooding.
“Floods can happen anywhere, at any time. They are the most common and costly type of natural disaster in the United States and the NFIP is the leading source for flood insurance for property owners, businesses and renters.
“FEMA is committed to the NFIP’s constant improvement. This includes tapping into the insights of whole community partners to address the program’s affordability, guarantee its long-term viability, and ensure everyone can obtain coverage.
“Flooding and mudflows, including those that may result from the recent devastating wildfires in California, will continue to significantly affect Americans year-round. FEMA wants to ensure that the insurance gap is closed and that there is not a lapse in authorization. A lapse would mean that the NFIP cannot enter into new flood insurance contracts. The renewal of existing policies and new or refinanced mortgages may also be impacted. Americans need flood insurance, and allowing a lapse will only set the nation back in addressing the issue of flood risk.
“If a lapse were to occur, policies that are in effect before midnight on November 30, 2018, will remain in effect and claims will continue to be processed.”