On Nov. 14, the U.S House of Representatives passed the 21st Century Flood Reform Act (H.R. 2874) to address the issueof the cost of repeatedly flooded properties draining the NationalFlood Insurance Program (NFIP), which is already in significantdebt.

There are five sections to the bill: policyholder protection andinformation, increasing consumer choice through private marketdevelopment, mapping fairness, protecting consumers and individualsthrough improved mitigation, and program integrity. Hereare the highlights of each section:

Policyholder protections and information

This section limits annual premium increases to 15% and annualincreases will be no less than 5%. Much of the NFIP's financialissues arise from inadequate premiums. The bill authorizes anaffordability program to provide financial assistance to those withincomes below 150% of the poverty level for the state through astate program.

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Christine G. Barlow, CPCU

Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.