More than 5 million families and businesses depend on the NFIP, including more than 60,000 in Mississippi.
U.S. Senator Cindy Hyde-Smith (R-Miss.) has announced her support for the passage of legislation to extend the National Flood Insurance Program (NFIP) before it expires on September 30.
Hyde-Smith is an original cosponsor of the NFIP Extension Act of 2021 (S.2724), which would extend the program through Sept. 30, 2022. The Federal Emergency Management Agency administers the National Flood Insurance Program.
The NFIP provides flood insurance to property owners, renters and businesses. Having access to this coverage helps these individuals and businesses to protect their assets as well as recover faster after floodwaters recede.
“Without a long-term reauthorization of the National Flood Insurance Program in place, it is critical that we extend this program for people in Mississippi and around the country who rely on this coverage to protect their homes and businesses,” Hyde-Smith said. “In the midst of an active hurricane season, it would be irresponsible for Congress to let this program lapse.”
According to FEMA, if the NFIP’s authorization were to lapse, they would still have authority to ensure the payment of valid claims with available funds. If this were to happen, FEMA would stop selling and renewing policies for millions of properties across the country. Nationwide, the National Association of Realtors estimates that a lapse might impact approximately 40,000 home sale closings per month.
More than 5 million families and businesses depend on the program, including more than 60,000 Mississippians.
Congress made major changes to the program in 1973, 1994, 2004, 2012 and 2014, and goes through periodic Congressional reauthorization to renew the NFIP’s legal authority to operate.
In September, Attorney Jimmy Heidelberg joined Y’all Politics to talk about the NFIP increasing flood insurance rates October 1st. Heidelberg sits on the Mississippi Oil and Gas Board and is the counsel for the Mississippi Windpool Board.
With the NFIP changing how it rates risks, flood insurance rates will increase up to around 18% for most Mississippians.
U.S. Senator John Kennedy (R-La.) introduced the NFIP extension measure, which Senators Bill Cassidy, M.D. (R-La.), Bob Menendez (D-N.J.), and Marco Rubio (R-Fla.) also cosponsored.
It has been referred to the Senate Banking, Housing, and Urban Affairs Committee. The full text of the NFIP Extension Act of 2021 can be found here.
Anne Summerhays
