WASHINGTON – Congressman Robert Pittenger (NC-09) issued this statement after passage of the 21st Century Flood Reform Act (H.R. 2874) to reform the National Flood Insurance Program (NFIP):
“With over $25 billion in debt and a deficit of $1.5 billion this year alone, the National Flood Insurance Program is unsustainable and in dire need of reform. For far too long, taxpayers have been stuck in an endless cycle of bailing out a program that is poorly managed and illogically rebuilds the same properties time and time again,” said Congressman Pittenger. “Yesterday, I was proud to support the 21st Century Flood Reform Act which reforms and modernizes the National Flood Insurance Program, including allowing competition from the private sector to help drive down costs.”
The 21st Century Flood Reform Act will:
Provide affordable NFIP coverage for current policyholder.
Expedite the implementation of policyholder monthly installment payment of premiums.
Establish a flood damage savings account for individual policyholders to facilitate either the reduction or elimination of NFIP premiums.
Improve safety by modernizing FEMA’s approach to designating and addressing multiple-loss properties.
Include the Ross-Castor Flood Insurance Market Parity and Modernization Act (H.R. 1422) to provide greater private market access, competition and consumer choice.
Allow localities, who elect to use their own resources, to develop their own map alternatives to NFIP flood maps using better and cost-effective technology at an accelerated pace, subject to FEMA standards and approval.
Require consideration of unique characteristics of coastal and local inland properties that are oftentimes over-charged.
Require, for the first time, FEMA to conduct an annual independent actuarial study of the NFIP fund to determine whether the government program is collecting revenue sufficient to cover its long-term expected losses.
Require the Administrator to use risk transfer tools, such as reinsurance or catastrophe bonds, to reduce direct taxpayer exposure to insurance losses.
Formalize an appeals process that was established for consumers when they dispute their claims.
Improve disclosure requirements for standard flood insurance policies.
The 21st Century Flood Reform Act passed the U.S. House of Representatives on Tuesday evening by a bipartisan vote of 237-189.
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