As reported in the last edition of this newsletter, Congress enacted the Biggert-Waters Flood Insurance Reform Act of 2012 to extend the National Flood Insurance Program (NFIP) for five years while enacting reforms to help address the program’s $24 billion debt load. The reforms were designed to return NFIP to solvency by phasing in revised pricing on the nearly 20 percent of all policyholders who pay a subsidized rate. Absent this national program, many apartment owners would likely not have access to flood insurance, since the private market has never stepped into this space in a meaningful way.
The House held a hearing on Nov. 19 to assess the ongoing implementation of the Act. NMHC/NAA and a coalition of industries representing the policyholder community wrote a letter to FEMA seeking a meeting to begin a process for identifying the most challenging provisions of the new law and to seek clarification, or other assistance, with compliance.
NMHC/NAA is uncertain of the full impact of the implementation of the law, but we are interested in hearing from membership about whether or not you are experiencing significant changes in your policies.