Our Positions | National Flood Insurance Program (NFIP)

Congress created the National Flood Insurance Program in 1968 to address the rising costs of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods. Prior to the NFIP’s creation, all flood losses were covered through taxpayer funded disaster aid. In 1983, the Write-Your-Own program was established, allowing companies to write and sell flood coverage for the NFIP as a means of increasing the number of homeowners with flood coverage. Under the program, companies administer the sales and claims of NFIP-backed policies and are reimbursed for their administrative expenses.

The NFIP offers flood insurance, in some cases with subsidized rates, to homeowners, renters, and business owners in some 20,000 communities that meet the program’s standards for flood plain management, with approximately 5.1 million flood insurance policies currently in place. The program was originally designed so that the premium dollars taken in every year would be used to pay out any flood losses incurred by policyholders. However, because the NFIP does not account for catastrophic loss years, massive flood losses have left the program in debt.

Congress was successful in implementing some reforms with the passage of the Biggert-Waters Flood Insurance Reform Act of 2012. The legislation, passed after a string of 17 temporary extensions over three Congresses, extended the NFIP for five years and addressed the problems of adverse selection, moral hazard, and financial instability that have caused the program to fall into debt.

But even before the reforms of Biggert-Waters could be implemented, Congress passed the Homeowner Flood Insurance Affordability Act of 2014. The law rolled back many of Biggert-Water’s provisions meant to bring financial stability to the NFIP, primarily implementation of actuarial rates for nearly 1.1 million policies, returning the program to its fiscally precarious position.

Since the authorization enacted under Biggert-Waters expired in 2017, the program has again been subject to a series of last-minute extensions.

NAMIC Position

NAMIC supports a long-term reauthorization of National Flood Insurance Program that includes a shift toward risk-based rates, policies designed to increase private sector involvement in the program, and provisions to address affordability, increase mitigation, and address repetitive loss properties.

NAMIC: Delaying Risk Rating 2.0 Leaves Americans Vulnerable to Floods

November 8, 2019 The Federal Emergency Management Agency will leave millions of homeowners at greater risk of flooding with a decision to delay implementation of the Risk Rating 2.0 plan for the National... Read more

South Carolina: DOI Holds Annual Legislative Conference

November 7, 2019 NAMIC attended the annual South Carolina Department of Insurance Legislative Conference on Nov. 6 in Columbia with approximately 60 insurance industry lobbyists also attending. Following a meet and greet with many SCDOI staff members... Read more

Coastal Lawmakers Urge Congressional Leaders to Add Rate Caps to NFIP Bill

November 4, 2019 More than 60 coastal lawmakers sent a letter Nov. 1 urging congressional leadership to ensure the National Flood Insurance Program reauthorization legislation advanced earlier... Read more

Long-Time NAMIC Ally New Republican Leader of Insurance Subcommittee

October 21, 2019 House Financial Services Committee ranking member Patrick McHenry, R-N.C., announced Oct. 17 that Rep. Steve Stivers, R-Ohio, a long-time ally of NAMIC, will take over as the top Republican on the Subcommittee on Housing, Community Development, and... Read more

South Carolina: SCDOI Modifies Private Flood Draft in Response to NAMIC’s Comments

October 8, 2019 The South Carolina Department of Insurance on Oct. 2 shared a final version of its private flood insurance bill draft. The modifications to the department’s previous draft appear to be in response to an Oct. 1 comment letter from... Read more


Andrew Huff
Federal Affairs Director