Bill Overview
Title: NFIP Extension Act of 2022
Description: This bill reauthorizes the National Flood Insurance Program through September 30, 2023. The bill shall take effect as if it had been enacted on September 30, 2022, the date the program is set to expire under current law.
Sponsors: Sen. Kennedy, John [R-LA]
Target Audience
Population: People in the United States relying on the National Flood Insurance Program
Estimated Size: 5000000
- The National Flood Insurance Program (NFIP) provides flood insurance to property owners, renters, and businesses in participating communities.
- Flooding is the most common and costly natural disaster, impacting many individuals, especially in flood-prone areas.
- The NFIP is utilized by individuals living in federally designated flood zones, offering them affordable flood insurance coverage.
- The program supports communities in maintaining practices to manage flood risks and comply with FEMA regulations.
Reasoning
- NFIP helps protect homeowners in flood-prone areas from catastrophic financial loss due to flooding. This policy affects primarily those in high-risk flood zones.
- Not all residents are aware of or fully utilize the program. Some may see no change in their wellbeing, while others depend on it for financial security.
- The extension maintains the status quo for policyholders, preventing a lapse in coverage. This particularly affects individuals with homes in flood zones who might face increased anxiety or financial burdens without it.
- While the budget allows for broad coverage, it doesn't expand the program, so those not already participating won't directly benefit.
- Disaster frequency and intensity can influence real-term impacts and perceived benefits of the NFIP extension.
Simulated Interviews
Teacher (New Orleans, Louisiana)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- The NFIP gives me peace of mind knowing that I have protection against potential flooding disasters.
- Without NFIP, I would struggle to afford private insurance and live in constant fear of losing my home.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 3 |
| Year 2 | 6 | 2 |
| Year 3 | 6 | 2 |
| Year 5 | 5 | 1 |
| Year 10 | 5 | 1 |
| Year 20 | 3 | 1 |
Retired engineer (Miami, Florida)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I support the NFIP because it helps the community around me, even though as a renter, I'm not directly affected.
- It would be worrying to see property values drop if others faced flood damage and couldn't repair it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Small business owner (Houston, Texas)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- The NFIP is crucial for my business; a flood could ruin us.
- This policy helps me sleep at night knowing my financial exposure is mitigated.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 4 |
| Year 2 | 8 | 3 |
| Year 3 | 7 | 3 |
| Year 5 | 6 | 2 |
| Year 10 | 5 | 2 |
| Year 20 | 4 | 1 |
Software Developer (Boston, Massachusetts)
Age: 28 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I don't own property so the NFIP's extension doesn't affect me.
- However, I do support it as it seems crucial for those who are at risk.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Emergency services coordinator (Galveston, Texas)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The NFIP enables us to prepare and rebuild more effectively as a community.
- Professionally, it supports many plans for recovery after potential floods.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Environmental scientist (Charleston, South Carolina)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The NFIP is crucial as flood risks increase with climate change.
- I'm relieved knowing my coverage won't lapse, especially during hurricane season.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 5 |
| Year 2 | 8 | 4 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 7 | 2 |
| Year 20 | 5 | 1 |
Banker (New York City, New York)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I understand the importance of the NFIP, but it doesn't impact me personally.
- My focus is more on investments rather than immediate housing risks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Student (Baton Rouge, Louisiana)
Age: 25 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- The NFIP is a topic I study and live with its impact daily.
- It secures my parents' home, which is a huge relief during storm seasons.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 2 |
| Year 20 | 3 | 2 |
Retired contractor (Mobile, Alabama)
Age: 70 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- At my age, I prefer stability. The NFIP extension helps with that knowing insurance won't lapse.
- Having lived here my whole life, I'm familiar with the devastations floods can cause.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 2 |
Insurance adjuster (St. Louis, Missouri)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Professionally, the NFIP is vital for my clients, ensuring they have coverage in times of need.
- Personally, I don't have a direct benefit, but I see its community importance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 6 | 2 |
| Year 20 | 5 | 1 |
Cost Estimates
Year 1: $1800000000 (Low: $1500000000, High: $2100000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The extension primarily concerns the administrative aspect of continuing the current program rather than altering its scale or scope.
- Flood claims from extreme weather events could cause financial variability beyond average estimates.
- Program sustainability depends on actuarial adjustments that align premiums with risk, despite the political challenges.