The House of Representatives recently passed the 21st Century Flood Reform Act, a collection of seven bills that would reauthorize the National Flood Insurance Program (NFIP) until 2022 and establish a number of reforms. Many of the proposed changes focus on increasing the program’s financial viability, as the NFIP exceeded its borrowing limit of $30 billion during this year’s hurricane season.

Here are some of the key additions included in the recently passed bill:

  • Improved technology to help the Federal Emergency Management Agency (FEMA) map flood zones and set insurance premiums
  • Limits on annual premium increases and surcharges
  • Financial tools to help FEMA and the NFIP plan for their long-term needs
  • An option for businesses to opt out of flood insurance requirements after one year
  • Incentives for private flood insurance providers

According to the Congressional Budget Office, the proposed reforms would lead to $187 million in savings between 2018 and 2027. However, critics of the bill believe that the changes could increase the price of flood insurance in low-income areas.

 

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