Apartment Industry Wins with NFIP Bill
After months of waiting, there’s finally good news on flood insurance – legislation to reauthorize the National Flood Insurance Program (NFIP) successfully passed its first hurdle to becoming law by securing a strong majority of support in the House of Representatives. Although some desirable aspects didn’t make the final cut, the bill itself is a win and will play an important role in the long-term health of our industry.
Critically, the legislation reauthorizes NFIP for the next five years and provides greater flexibility to owners. Insurance means money, literally in this case. Affordable and readily available flood insurance ensures that apartment housing projects can meet requirements for federal loans and obtain necessary financing.
Refreshingly, the industry and owners alike will be in more control under the House plan. The legislation removes the federal purchase requirement for multifamily properties and clarifies that private insurance meets mandatory purchase requirements. These provisions allow flexibility and give individuals in the industry the ability to secure a product that’s both cost effective and the best option to cover their unique risk.
Mitigation options are also opened significantly. Ahead of disasters, owners can invest in alternative and innovative mitigation measures in exchange for reduced NFIP premiums. And post-disaster? Coverage limits will rise from $30,000 to $60,000, helping property owners make their structures more resilient.
NFIP is set to expire on December 8, adding a sense of urgency to continuing the bill’s momentum and securing passage through the Senate. Long-term reauthorization and mindful NFIP reforms are necessary in helping us all manage flood risk and securing housing for the growing number of Americans calling apartments home. The apartment housing industry’s action and advocacy can again make all the difference.
Click here to read an in-depth description of the NFIP bill.