National Flood Insurance Program Extended Through February
Dec. 22, 2009 – An estimated 5.5 million homes in the United States will continue to be covered through the National Flood Insurance Program after federal officials once again delayed enacting permanent changes while occupying their time debating controversial national health care reform measures that won’t take effect for several years.
President Barack Obama yesterday signed into law a measure extending the National Flood Insurance Program through February 2010. The U.S. Senate last week approved the temporary extension as part of a defense appropriations bill.
Although failing to make permanent changes to the federal insurance program facing financial difficulties, the Senate continues debating a highly controversial health care reform that won’t take effect until 2014. In the meantime, insurance industry proponents say federal officials will have more time to address National Flood Insurance Program shortcomings.
“We applaud the Senate for keeping the National Flood Insurance Program in place,” Ben McKay of the Property Casualty Insurers Association of America said in a statement. “We look forward to working with the House and Senate in 2010 to advocate a long-term extension that ensures the program’s fiscal soundness and protects homeowners.”
The National Flood Insurance Program was scheduled to expire on Dec. 18, potentially leaving more than 5.5 million U.S. homes in flood-prone areas without flood insurance protection. The National Flood Insurance Program is the insurer of last resort in areas where private insurance companies deem it too risky to provide typical flood insurance protection. The federal program covers homes located across America in high-risk flood areas.
The flood insurance program’s expiration date already had been extended twice this year to give members of the U.S. House of Representatives and Senate time to work out differences in the program’s direction. House members are demanding the program be expanded to provide insurance protection against wind damage, according to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
The National Flood Insurance Program initially would have expired at 11:59 p.m. on March 6, but Congress passed continuing resolutions temporarily extending funding for federal programs under an omnibus bill while legislators hammer out a final compromise. The recent passage of the omnibus funding measure ensured a temporary extension of the National Flood Insurance Program while additional program reform is debated, but federal lawmakers have been sidetracked while debating proposed national health care reform measures that are highly controversial and won’t take effect for several years.
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