In the aftermath of Hurricanes Helene and Milton, CSFI is motivated towards achieving a reauthorized, reformed NFIP.   CSFI’s Michael Hecht, President & CEO of Greater New Orleans, Inc. (GNO, Inc.), recently spoke with NewsNation, a 24/7 cable news network that reaches over 65 million households, about recent flood events.  Hecht discussed post-disaster recovery, NFIP reform needs, and the prospect of national catastrophic insurance (“Nat Cat”).  Hecht’s interview can be viewed online.

The importance of NFIP’s affordability and availability is paramount when considering these events, and when preparing for and recovering from all intensifying storms in the future.  From Hurricane Helene alone, CoreLogic initially estimated between $6B and $11B in NFIP-insured flood losses, yet up to $30B in uninsured flood losses.   Meanwhile, since Risk Rating 2.0’s implementation, NFIP participation has fallen in affected states: -5.4% in North Carolina, -7.4% in Virginia, 8.7% in Georgia, -12.2% in Tennessee, and -23.8% in West Virginia.  In some counties, like Buncombe County, NC (which includes Asheville), NFIP take-up is only 0.79%.

For affected property owners with NFIP coverage, FEMA is offering special assistance.  FEMA has extended renewal periods, beyond the standard 30-day renewal grace period.  NFIP has also extended the proof of loss requirement for policyholders who suffered flood damage from the standard 60 days to 120 days from the date of loss.  Policyholders who wish to take advantage of the grace period should contact their agent or insurance company, and policyholders should be sure to ask their insurance agent or company about advance claims payments to help start their recovery.  Advance payments of up to $20,000 may be available, prior to a visit from an adjuster.  Policyholders who do not have their insurance agent or company’s contact information should call 877-336-2627 for assistance.  To learn more about how to file a flood insurance claim, please visit www.floodsmart.gov.

CSFI reiterates policies priorities, in advance of the forthcoming December 20, 2024 NFIP reauthorization deadline:

• Enacting a means-tested affordability program – open to existing and prospective NFIP policyholders – that considers housing burden and is eligible to households earning 400% of federal poverty level
• Eliminating NFIP’s debt or freezing policyholder-paid interest payments ($619M in FY23, 11% of total premiums collected) and reinvesting savings into mitigation fund
• Restoring larger, legacy mitigation discounts for elevating properties and consider discounts for green infrastructure and dry floodproofing
• Requiring an third-party review of NFIP’s methodology to ensure accuracy and rectify data errors
• Capping annual premium increases to 9% to halt NFIP’s plummeting participation
• Establishing an appeals process to confirm correctness of premium charges, property-level risk factors, and mitigation discounts
• Prescribing studies on strategies to expand risk pool, like mandatory purchase or all-peril federal catastrophic programs