National Flood Insurance Program One Step Closer To Renewal
On Tuesday, a bill to renew the National Flood Insurance Program(NFIP), which is set to expire this September, passed a key hurdle in the Senate. Lawmakers have stepped up their efforts to reauthorize the program which is run by the Federal Emergency Management Agency(FEMA).
The Senate bill would extend the program through 2013, while forgiving a $17 billion NFIP debt run up by the Federal Emergency Management Agency after 2005’s Hurricane Katrina.
Unlike a similar bill passed last year in the House of Representatives, the Senate bill would not add wind damage coverage to the program.
With the start of the hurricane season less than a month away, there are still a large number of residents without adequate flood coverage. Researchers are predicting well above average hurricane activity for the Atlantic basin this year.
While FEMA has done it’s best in trying to get the word out, there is still a large lack of awareness for many Americans about flood insurance in general. Unlike wind damage coverage which can be purchased from regular property insurers, there is for the most part no private market for flood insurance.
