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, Coalition of Stakeholders Urge Congress to Prevent NFIP Lapse

September 15, 2020 The National Association of Mutual Insurance Companies, along with 17 other stakeholders, urged Congress to ensure that the National Flood Insurance Program will not lapse ahead of its current Sept. 30 expiration date or risk devastating consequences... Read more

NAMIC Leads Joint Industry Effort to Avoid Month-End NFIP Lapse

September 14, 2020 NAMIC is leading a cross-industry effort calling on Congress to extend the authorization of the National Flood Insurance Program before its Sept. 30 expiration... Read more

NAMIC Submits Comments to Provide Clarity to Insurers Working With Lenders in NFIP

September 8, 2020 NAMIC submitted comments Sept. 4 to a number of lending agencies in response to a notification and request for comment published in the Federal Register in July as part of an effort to provide clarity for insurers working with lenders in writing... Read more

South Carolina: BuildStrong Exec Will Discuss ‘The Rising Cost of Water’ in Webinar

August 4, 2020 Pamela Williams, BuildStrong Coalition executive director, will be a panelist for the South Carolina chapter of The Nature Conservancy’s webinar series “The Rising Cost of Water” on Aug. 18. NAMIC is a founder of the coalition... Read more

NAMIC Urges Appropriators to Maintain Flood Map Funding Levels

May 4, 2020 NAMIC was among the signatories on a letter sent April 23 by a group of diverse stakeholders representing the real estate, housing, and insurance industries urging congressional appropriators to maintain an appropriate level of funding for... Read more


Andrew Huff
Senior Director of Federal Affairs