iStock/ Kyrien
26 July 2018Insurance

US Congress extends NFIP till November

The US Congress has enacted a short-term extension to the National Flood Insurance Program (NFIP) through November, preventing the programme to lapse during peak hurricane season.

Hurricane Irma, which hit Florida in September 2017 caused more than $1.1 billion in claims by July 12, 2018.

The NFIP supplies more than 5.2 million US property owners with vital flood insurance coverage and is carrying $25 billion in debt.

SmarterSafer, a lobby group representing insurance stakeholders and housing organisations, among others urged representatives to reform the programme.

“The necessary overhaul of the nation’s flood insurance programme should include measures that promote mitigation against the threat of flooding; update and improve outdated flood-risk mapping techniques; ensure full communication of flood-risk data to communities and home-buyers; and ensure consumers can choose private flood policies,” the organisation said.

“Recent studies have found private insurance could offer cheaper premiums, giving Congress the opportunity to reduce premiums for a majority of policyholders nationwide – but Congress has not yet acted on this. These reforms will save taxpayers billions annually and contribute to a smarter, safer and more robust system of flood insurance that will better protect people and property in harm’s way,” according to SmarterSafer.

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More on this story

23 July 2018   The Federal Emergency Management Agency (FEMA) warned over the consequences if the US congress fails to reauthorise the National Flood Insurance Program (NFIP) that will expire on July 31, 2018.
24 July 2018   More than $1.1 billion in claims has been paid by July 12, 2018 to policyholders because of damage caused by hurricane Irma, according to latest data from the US Federal Emergency Management Agency (FEMA).
Alternative Risk Transfer
1 August 2018   The Federal Emergency Management Agency (FEMA) has secured $500 million in reinsurance for its National Flood Insurance Program (NFIP) through capital markets.