NFIP Updates, August 2021
Rate caps proposal. Sens. John Kennedy (R-La) and Bob Menendez (D-NJ) introduced an amendment to the infrastructure bill passed by the Senate this week that addresses some challenges facing the National Flood Insurance Program (NFIP). While this amendment was not included in the final version of the bill, we are grateful for its introduction, as it included important affordability provisions, such as capping annual rate increases at 9 percent per year.
This provision is particularly important, given the upcoming launch of Risk Rating 2.0 and the uncertainty of premium hikes. You can read more in a recent CSFI memo outlining these priorities which has been sent to some members of Congress. With the current NFIP reauthorization expiring September 30, we will continue to update our Coalition on significant updates.
Risk Rating 2.0 Implementation. Risk Rating 2.0 is still scheduled to be implemented October 1, 2021 for new policyholders, and on April 1, 2022 for existing policyholders. While rates were set to be publicly released August 1, that information has been delayed until mid-month. We are planning to hold a CSFI webinar once that information is available.
Membership. We want to thank the newest members who have formally joined our coalition – the National Association of Home Builders, the City of Galveston, United Policyholders, and the Coastal Alabama Partnership. We are very grateful for their support, which helps to underwrite our direct expenses related to the NFIP initiative. The membership fees are:
- $250 – Government of Nonprofit Organization
- $500 – Private/For Profit Organization
You can find more information on joining here: https://csfi.info/join-the-coalition/. Thank you for your continued engagement with CSFI.