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.

Florida has some of the highest property insurance rates in the country with the annual threat from hurricane damage.  Consumers and lawmakers alike have been criticizing insurance companies over high rates in the wake of mild hurricane seasons the last few years as well as for what they claim are disreputable industry practices.

Last week, Florida’s Senate passed a property insurance bill that insurance companies were vehemently opposed to.  The proposed bill, which still needs to be passed by the House would freeze rates on the state’s subsidized insurance program.  It would also increase penalties to companies that violate state insurance laws.

“This is about every consumer getting a fair shake at having a fair and square, straight-up relationship with their carrier,” said Sen. Jeff Atwater, R- North Palm Beach, a sponsor of the bill. “It’s really time that consumers deserve to be front and center in the insurance debate rather than it being about what the insurance industry needs.”

The bill would certainly make insurance more accountable and give the state’s insurance office more teeth.  Earlier this year Florida’s insurance commissioner banned Allstate from writing new policies in the state, however the company is still writing policies to this day while it pursues a lengthy appeals process.

Last year the state spent billions of dollars to fund a program that would give insurance companies a discount on costly reinsurance.  It was supposed to help lower rates across the state but insurance companies raised premiums nonetheless.

Seeing as the carrot didn’t seem to work out to well perhaps it is time for the state to use the stick.

Many Americans are overpaying for home and car insurance and don’t even know it.  It is important to review your policies at least once a year.  Here are a few things that anyone can do to help save money on their insurance.

Compare prices

Property and auto insurance rates have been on the decline recently, so it might be good time to shop around and see if you can’t get a better deal somewhere else.

Purchase the proper amount of coverage

For homeowner’s insurance especially it is important to get an accurate value to what you are insuring and the amount of coverage you actually need.  Instead of using property value as the basis for coverage amounts you should use the estimated replacement or reconstruction costs.  With housing prices in a sharp decline, some people may actually be under insured.

Increase your deductible

It can increase what you pay for an incident but it can significantly lower the cost of your premiums.

Use a single insurer

In some cases it may be cheaper to get both types of coverage from a single insurer.  Check to see which companies offer package deals.

Look for discounts

Many companies offer discounts for a variety of different reasons.  For instance, a company may offer government employees a special discount. Make sure you receive any that you might be entitled to.