Congress asked to end National Flood Insurance Program in 2013


A new bill filed the U.S. House of Representatives would phase out the National Flood Insurance Program, leaving about 5 million property owners in jeopardy.

Rep. Candice Miller of Michigan

Candice Miller

Rep. Candice Miller (R-Mich.) is sponsoring the National Flood Insurance Program Termination Act of 2010, which would end funding to the Federal Emergency Management Agency for the program Dec. 31, 2013. The bill also seeks an immediate end to remapping efforts funded previously.

The program is set to expire this Sept. 30, after being extended late last year for a short term. Miller’s bill does not extend funding for the intervening two years, leaving further uncertainty about its future.

After decades of five-year extensions, the program has been kicked down the road with five short-term extensions, three in 2010, and two lapses in funding since its last long-term extension expired Sept. 30. 2008.

The uncertainty about the program’s future has made it hard for insurance agents who offer it and the property owners who count on it when buying or selling properties.

The NFIP provides coverage that other insurers have not provided because of the risk.

But as Congress looks for ways to cut the $14 trillion federal deficit, the NFIP provides a good target, according to Ryan Young, senior director of federal government affairs for the Independent Insurance Agents & Brokers of America (Big I) said in early February. “This will be a huge issue for us,” Young said at a Virginia Day on the Hill legislative update in Richmond, Va.

Republicans, who earned the majority in the House in the 2010 midterm elections, have been aggressively pursuing budget cuts, saying the deficit grew too much under Democrats in Congress and in the White House.

“A lot of legislators will wants to cut budgets, and that could put the flood insurance program in a bad position,” Young said.

5 Responses

  1. paul gremillion Says:

    In Louisiana thounsands are located in flood zone designated areas. These areas are not low lying areas but simply an area that could be near a stream, river or lake therefore they are categorized a flood zone prone areas many of which have never flooded and therefore if you have a mortgage you must carry flood insurance. What does this Michigan rep who probably has never seen a coastal region expect will come of ending the flood insurance program? More money to waste on government excess? Is the government going to buy back all of the flood properties and homes like they have talked about doing in South Mississippi for years. Create new buffer zones all over south louisiana and the United States of America? That sounds more costly. Why don’t they simply manage the Flood program better, charge more and stop with Goverment excess.

  2. GREG LONG Says:

    If you are not going to cut the program completly, at least forbid Mortgage companies from requireing the insurance just because a property is located in some arbritary “flood plain ” map.

    It’s like a tax on the poor. If you don’t have the money to pay cash for a house, then you haveto have the flood ins.
    My house here in Michigan will be paid off next year, I can’t wait for the day I tell FEMA to go fly a kite!!!

    greg in Michigan

  3. Steve in Ohio Says:

    I just recieved my notice that I must buy flood insurance and I am living in a area which has not flooded since 1913. I think the new FEMA flood zone extension is an attempt to fund FEMA with having to ask the populace for raised taxes. I am having a hard time meeting my mortgage and the extra cost of the flood insurance might just be what it takes for me to abandon the house. SHAME.

  4. Barb in Michigan Says:

    More info please…. our flood insurance for 15 years was $389.00 a year until 2011 and it went up to $1911.00. The person at FEMA ask my insurance agent “What OCEAN do they live on”. We spent a ton on FEMA approved Flood Vents so that our rate would go down. Hahahahahahaha….. this year our new and reduced premium was 1087.00.

    Ocean side in Michigan.

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