House Passes an Alternative to NFIP
In a unanimous vote, the U.S. House of Representatives passed The Flood Insurance Market Parity and Modernization Act on April 28, 2016. This law effectively allows lenders to accept private flood insurance solutions to meet mandatory purchase requirements for federally backed mortgages. This is largely viewed as a positive development in the insurance marketplace, fostering competition and providing an alternative to the debt laden National Flood Insurance Program (NFIP) run by the U.S. government.
While the bill advances to the Senate with strong support, the time frame remains uncertain. We expect that passage of the bill will encourage development of a private flood insurance market that can complement and compete with the NFIP, and provide alternatives to insurance buyers in these high risk areas.
We are prepared to respond to these developments for our clients with flood insurance solutions utilizing high quality insurers who have proven track records in the high risk property marketplace. Additionally, we offer proprietary program options and abundant capacity that can minimize or replace NFIP