WASHINGTON, D.C. ― U.S. Rep. Steve Pearce released the following statement after the U.S. House of Representatives passed H.R. 2874, the 21st Century Flood Reform Act, to reform the National Flood Insurance Program (NFIP):
“The National Flood Insurance Program was created to better protect homeowners and businesses in high-risk flood zones because the private market simply wasn’t able to do it. Unfortunately, after 50 years, this program has become financially unstable and is in desperate need of reform. Most importantly, today’s bill reduces the cost of insurance for residents in low-risk areas like the ones in our New Mexico communities. To do so, this legislation modernizes aspects of the NFIP to more accurately map flood risk, requires FEMA to oversee the financial health of the program, and enables private insurance providers to offer coverage. The ultimate goal is to create a competitive marketplace so private insurance providers can offer consumers coverage at more affordable rates.”
H.R. 2874 reauthorizes the National Flood Insurance Program for five years, provides access to a private market, and includes reforms to increase affordability for policyholders.