Depending on where you live, floods can be a massive contributing factor to property damage and subsequent claims or litigation. Two Senators have seen the ongoing risk and are seeking to extend the limit on the National Flood Insurance Program.

We’ve talked a bit about the NFIP before, mainly in regard to Hurricane Sandy insurance claims and their difficulties. Recently, however, the NFIP has come back into the spotlight as two Senators have aligned their efforts to renew the flood insurance program for another ten years.

According to this report from, the two Senators – Bill Cassidy (R-La.) and Kristen Gillibrand (D-N.Y) respectively – have put together some legislation entitled “The Flood Insurance Affordability & Sustainability Act of 2017” would renew the NFIP for another decade.

Not only that, this legislation should resolve several other issues. Insurance journal reports:

The Cassidy-Gillibrand legislation promises to address flood insurance affordability, coverage limits and solvency issues while encouraging increased mitigation and gradual private sector involvement. It also seeks to strengthen flood mapping and claims handling.

However you see it, the increase of private companies involvement in flood insurance claim cases may be a bad or good thing. The report further elaborates and this allowance of private companies, saying:

…private sector involvement, the legislation promises to remove barriers to the entrance of private insurers into the flood insurance market. “Such market entrance by private insurers should be gradual and preserve the availability and affordability of flood insurance coverage for all consumers while continuing the investment in floodplain mapping and management,” according to the senators’ summary.

While this may be a naive viewpoint of the impact of allowing private insurance companies access to the claims of flood victims, only time will tell whether this legislation actually passes or is amended and makes any difference on the NFIP.

What do you think? Will this legislation lead to policy holders getting taken advantage of or will it help the claim process for flood victims?