Lopez, Shonkwiler, Garcia-Wilburn: The National Flood Insurance Program needs an update, and there’s a common-sense change that could make a big difference for Hoosier homeowners

Representative Danny Lopez

Representative Alaina Shonkwiler

Representative Victoria Garcia-Wilburn

The National Flood Insurance Program needs an update, and there’s a common-sense change that could make a big difference for Hoosier homeowners. 

Following last weekend’s flood, many of us had the opportunity to visit with families across Hamilton County whose lives were instantly upended. Stories of generous neighbors, caring community organizations, selfless public safety officials, and responsive local government are common themes, as is often the case when tragedy strikes here in Indiana. As we move into the recovery phase, elected officials at every level ought to be looking for ways to make policy changes based on the lessons learned through the harrowing experiences so many of our neighbors have faced.

One such common-sense policy change, which can only be made by Congress, would create a new exception to the National Flood Insurance Program’s (NFIP) thirty-day wait period. In the flood’s aftermath, we spoke with several new homeowners who fell into this coverage gap, designed to stop people from gaming the system by buying coverage right before a known storm. Sounds reasonable, perhaps. But in practice, families who had purchased their properties less than thirty days before the flood, had paid their premium in full, and were then blind-sided by the storm are now left holding the bag through no fault of their own. 

That means Hoosiers are paying for protection they can’t use, and that’s simply not fair.

To be clear, some leeway in the NFIP already exists. Current exceptions cover instances when mortgage companies require flood insurance for new or refinanced loans as well as post-wildfire cases, to name a couple. But sudden acts of God for new home purchases are not covered, a glaring gap that leaves homeowners without protections when tragedies unexpectedly strike. 

It is important to note that in order for their residents to qualify for NFIP policies, states like Indiana must conform their laws and administrative rules to those of the federal program. This federal program, established in 1968, is voluntary for states, and national standards do help make critical flood insurance available. Still, the last major update to the NFIP came nearly a decade ago, and closing a loophole that lets insurers off the hook when responsible homeowners need them most is just common-sense policy.

Congress should explore a simple amendment to the National Flood Insurance Program that grants narrow waivers for verifiable, unpredictable events that strike during the 30-day wait period, a common-sense change that could be consequential for many new homeowners when the next flood hits.

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