Flood Insurance Program Reauthorization Passed 

NAA/NMHC scored a legislative victory when the U.S. House of Representatives
in mid-July passed a bill (HR 1309) to reauthorize the National Flood Insurance Program (NFIP) for five years, through Sept. 30, 2016. The program has been operating on short term extensions since 2008, causing uncertainty for the property owners who rely on this coverage.

The bill also takes steps to reduce its $18 billion debt by phasing in actuarial rates for certain properties. Apartment policyholders who currently receive a subsidized rate are not among those properties identified to move to full risk rates. Other important provisions include increasing coverage limits, which are currently capped at $250,000 for apartment properties, and indexing them to inflation.

During floor debate of the bill, two NAA/NMHC-opposed amendments were rejected. The first would have struck the new business interruption coverage and cost of living expenses provisions from the bill. The second amendment would have terminated the program in its entirety by January 2012.

Finally, the amended bill includes a provision to ensure that apartment renters are informed of the availability of content coverage through the NFIP. The measure now moves to the Senate.

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