Volume 6 Issue 15 June 29, 2012
Congress authorizes NFIP for 5 years
Congress approved legislation today including a five year extension of the NFIP, moving it to President Obama for signature.
The legislation provides for a five year authorization which will offer much needed stability and confidence to the NFIP and to the US housing market. Additionally, this legislation initiates reforms intended to gradually move toward actuarially-based premium rates especially for second and vacation homes, commercial and repetitively damaged properties. Further, several studies are now mandated including a study to further evaluate the residual risks related to flood control systems in place across the country.
"Primarily, long term re-authorization of the NFIP along with meaningful reform has been the goal through all the short term extensions of the past 3 years" stated Patty Templeton Jones, COO of Fidelity National Indemnity Insurance Company. "We are grateful that the property owners in the US can now ensure the protection for their homes and businesses that the flood insurance program was intended to provide."
Fidelity supports sound risk management practices, has been a participant in the authorization and reform of the NFIP through the legislative process as your advocate, and will continue to keep you informed as further changes develop from this new legislation. Thanks to all the Fidelity agents who supported our legislative outreach programs, added their voices to our efforts and contributed to this accomplishment.
For more information, please contact Flood Marketing at 866-373-5663 or contact your regional sales manager.