Editorial: Congress needs to keep National Flood Insurance Program in business - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Property and Casualty News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Property and Casualty News RSS Get our newsletter
Order Prints
October 2, 2025 Property and Casualty News
Share
Share
Post
Email

Editorial: Congress needs to keep National Flood Insurance Program in business

Staff EditorialThe New Orleans Advocate

If there's one thing that Louisianans can take to the bank, it's that the most recent flood will not be the last.

So it would be really helpful if they could count on something else: reliable and available flood insurance.

Yet once again, the federal government, which writes the vast majority of flood policies in the U.S., isn't keeping up its end of the bargain. The government shutdown that began Wednesday also marked the expiration of the National Flood Insurance Program's authorization.

So what does this mean for the more than 400,000 Louisianans who rely on this coverage?

In the immediate term, current policies remain in effect. But new policies can't be written, existing policies up for renewal can't be renewed and real estate purchases in zones where lenders require flood coverage can't go through. And potentially, the expiration could limit the payment of claims.

If all this sounds familiar, it should.

Congress routinely lets the flood insurance program lapse, or comes close. During the past decade, it's passed no fewer than 33 short-term authorization extensions. One such extension was included in the short-term spending bill that has fallen victim to the larger partisan stalemate. Another, a standalone measure, is proposed but awaiting action.

These frequent extensions are largely the result of Congress kicking the can down the road as it contemplates the larger goal of reforming the program to make it less costly, more actuarially sound and simply more fair.

That it has largely failed on that front is telling, for charting a different path requires grappling with hard questions about how much and whether government insurance should subsidize those who live in areas prone to flooding, and how to discourage building in flood-prone areas without punishing longstanding communities where living with water is simply a fact of life.

The program's most recent reform, called Risk Rating 2.0, proved controversial and punishingly costly for many Louisiana homeowners. Some who are not required by lenders to carry coverage have dropped it, leaving them vulnerable to the next disaster and likely putting others on the hook for their recovery.

That said, there has been some isolated good news lately. Residents of unincorporated Jefferson Parish and Livingston Parish recently became eligible for rate cuts, as a result of local flood mitigation measures. Property owners in Youngsville could now qualify for a break too, since city officials were recently approved for the NFIP's voluntary community rating system.

But the bigger issues surrounding the flood insurance program's future remain, even as the Trump administration's deeply concerning talk of scaling back or eliminating FEMA, which runs the NFIP, raises new ones.

Still, none of that means that Congress can't minimize damage in the short run by extending the program's current provisions one more time. Or even better, it could extend them indefinitely, which would not preclude reform but would minimize disruption in the meantime.

That, at least, would keep Louisiana's ongoing insurance challenges from getting even worse.

Older

Best’s Market Segment Report: US Title Insurers Cautiously Optimistic Despite Current Headwinds

Newer

RELEASE: GOTTHEIMER CALLS FOR BIPARTISAN ACTION TO REOPEN GOVERNMENT, EXTEND ACA TAX CREDITS TO MAKE HEALTH CARE AFFORDABLE

Advisor News

  • Dutch gambling tax hike falls short as prediction markets eye World Cup
  • Caregiving: A challenge that costs employers billions
  • Could your practice benefit from an advisory board?
  • SEC nears settlement with accused scammer Tai Lopez
  • The 3 things that shrink your Social Security income
More Advisor News

Annuity News

  • Globe Life Inc. (NYSE: GL) Highlighted for Surprising Price Action
  • Trademark Application for “EMPOWER YOUR MONEY” Filed by Empower Annuity Insurance Company of America: Empower Annuity Insurance Company of America
  • Built-in guaranteed annuities: What advisors should know
  • Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
  • Why job boards are failing insurance agencies
More Annuity News

Health/Employee Benefits News

  • Georgia can do more to protect health coverage for its youngest residents
  • State budget helps 200,000 afford insurance
  • State Health Plan brings back Blue Cross NC, approves Novant and UNC Health deals
  • GOVERNOR SIGNS 38 BILLS INTO LAW
  • Premiums rise, but overall costs could fall for NC State Health Plan members under a new system
More Health/Employee Benefits News

Life Insurance News

  • THINGS YOUR CLIENTS SHOULD KNOW BEFORE SELLING A LIFE INSURANCE POLICY
  • Could your practice benefit from an advisory board?
  • AM Best Revises Outlooks to Stable for Missouri Farm Bureau Group’s Members and Farm Bureau Life Insurance Company of Missouri
  • Globe Life Inc. (NYSE: GL) Highlighted for Surprising Price Action
  • AM Best Assigns Credit Ratings to China Ping An Insurance (Hong Kong) Company Limited
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet