Removing Barriers Blog

House Votes to Reauthorize Flood Insurance Program
Posted November 16,2017 by CUNA Advocacy

The House passed legislation to reauthorize the National Flood Insurance Program, including changes that could limit future coverage and discounts for high-risk properties, modify premiums and surcharges paid by policyholders and expand opportunities for private insurers to sell policies. 

CUNA supports efforts to reauthorize the NFIP, and recognizes that continuing reforms are necessary to improve the actuarial footing of the NFIP and to ensure stability in the housing market in affected areas.  

CUNA has reservations, however, about a proposal that would increase civil money penalties on federally regulated lenders for failure to comply with the NFIP’s mandatory purchase requirements to $5,000, up from $2,000. 

The House Financial Services Committee has produced several legislative drafts for NFIP reform, each addressing an aspect of the program.

CUNA believes it is vital that flood insurance premiums remain affordable so that families in parts of the country where flood insurance is required are not shut out of the opportunity to own a home.  A strong, sustainable, and affordable NFIP will serve the best interests of our nation’s housing market for years to come, and CUNA will continue to support the reauthorization of this vital program.