The House of Representatives yesterday passed H.R. 5114, to reauthorize the National Flood Insurance Program (NFIP) for five years. The program had expired earlier in the year and last month Congress provided a temporary extension through September 30. NFIP is the primary source of reliable, affordable flood insurance coverage for more than five million American homes and businesses and during lapses in the flood insurance program over the past year, FEMA was not able to write new policies, renew expiring ones or increase coverage limits.

H.R. 5114 makes additional improvements to the flood insurance program by phasing in actuarial rates for pre-FIRM properties – those built before the effective date of the first Flood Insurance Rate Map (FIRM) for a community. It also raises maximum coverage limits, provides notice to renters about contents insurance and establishes a Flood Insurance Advocate, similar to the Taxpayer Advocate at the Internal Revenue Service.

In addition, FEMA has been revising and updating flood insurance maps to better reflect the risk of flooding in additional areas of the country that have experienced increase flooding in recent years. Many homeowners now find themselves in flood zones and required to purchase insurance. H.R. 5114 delays the implementation of new rate maps so homeowners in a neighborhood newly classified as a flood zone will not be immediately burdened with insurance costs.

The bill must now be considered by the Senate and signed by the President before it will enact into law. MHI members with questions can contact Rae Ann Bevington at rbevington@mfghome.org or Jason Boehlert at jboehlert@mfghome.org.