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CRS INSIGHT


Private Flood Insurance and the National

Flood Insurance Program (NFIP)

January 3, 2018 (IN10450)




Related Authors




   . Diane P, Hom




Baird Webel, Specialist in Financial Economics (bwebel4hrs cgo, 7-0652)
Diane P. Horn, Analyst in Flood Insurance and Emergency Management (dhorn@crlscgv,
7-3472)

The National Flood Insurance Program (NFIP)

The NFIP was first authorized by the National Flood Insurance Act of 1968 (42  C
§64001 et sea), and was reauthorized until the end of FY2017 by the Biggert-Waters Flood
Insurance Reform Act of 2012 (BW-12, Title II of P L 112-141). P L 115-96 reauthorized it
until January 19, 2018. In statute, Congress has found that

(1) many factors have made it uneconomic for the private insurance industry alone to make
flood insurance available to those in need of such protection on reasonable terms and
conditions; but

(2) a program of flood insurance with large-scale participation of the Federal Government and
carried out to the maximum extent practicable by the private insurance industry is feasible and
can be initiated. (42j S.C )§40Thb)

By lmy or regulation, federal agencies, federally regulated lending institutions, and
government-sponsored enterprises (GSEs) must require certain property owners to purchase
flood insurance as a condition of any mortgage that these entities make, guarantee, or

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