So there’s good news and bad news here. First, the National Flood Insurance Program (NFIP) has been extended as part of Friday’s budget deal:
The deal fails to provide a long-term fix for the underfunded program, which more than 200,000 homeowners in Harris County rely on The need for flood insurance became very clear after Hurricane Harvey put Houston under water. The problem is, the National Flood Insurance Program is not sustainable the way it’s currently set up.
The bad news here is that the program is still a mess. The incentives are all out of whack and the program continues to slowly drill a small, but growing, hole in the Federal budget.
And I for one welcome our returning insurance overlords. The program is a necessity. And fixing it in place is probably better for most people that taking it out back and giving it the Old Yeller. Giving the ongoing inaction on any substantive matter in the crippled Congress, no replacement for the NFIP would be forthcoming. But that also means the program is unlikely to be fixed, too.