On Friday, the US House passed H.R.4348, which reauthorizes the National Flood Insurance Program (NFIP) for five years. NFIP is the primary source of reliable, affordable flood insurance coverage for millions of American homes and businesses. The bill includes an amendment by Congressman Scott to allow NFIP premiums to be paid in installments. You can watch a clip of Congressman Scott speaking about the bill at this link.
"My amendment addresses the financial barriers that many homeowners encounter when procuring mandatory flood insurance for their property, namely the lump-sum payment of a policy premium," Congressman Scott said. "After severe flooding in Georgia, several constituents contacted my office to share their concerns about the burden of paying flood insurance premiums. While the deluge may have gone, we must make sure that these hard-working homeowners do not drown in the financial aftermath. My amendment will allow these homeowners to pay their premiums in installments and make insurance more affordable."
For the last few years, NFIP has been operating under short term extensions. This created uncertainty and hardships for homeowners who need flood insurance to secure low-interest SBA loans and other assistance to rebuild. The updated program provides a long-term extension of NFIP in order to provide dependable assistance for homeowners. Several constituents contacted Congressman Scott's office about the requirement for a lump-sum payment of a policy premium being difficult to fulfill in times of fiscal strain. Congressman Scott's amendment allows homeowners to submit their premium through monthly installments.You can watch a video of Congressman Scott discussing the need for long-term extension of the NFIP at this link.
Congressman Scott's amendment was originally added to an NFIP bill in 2010 and has been included in subsequent versions of NFIP re-authorization. H.R. 4348, referenced above, is primarily a transportation bill that includes the text of an NFIP bill, Flood Insurance Reform Act of 2011 (H.R. 1309). Congressman Scott is a member of the Committee on Financial Services, which has oversight of flood insurance programs.