Saturday, May 8, 2010

Congress working on bill to extend National Flood Insurance Program by five years

I have written several times (click the link and then scroll down to see earlier posts) about the National Flood Insurance Program, or NFIP, a program of the Federal Emergency Management Agency ("FEMA") that issues standard flood insurance policies, mostly through private insurers. NFIP is created by statute, and was originally set to expire in October, 2008. Congress has issued several short-term extensions to it. Recently Congress has had to reauthorize the program retroactively, and the program now expired again, leaving some homeowners unable to buy flood insurance.

Insurance & Financial Advisor reports here that Congress is working on a bill that reauthorizes NFIP until September 15, 2015. The article reports that the current version of the bill adds wind coverage, but such efforts have failed in the past.

According to the article, the current version of the bill increases coverage limits but phases out out premium subsidies for second homes and vacation homes.

No comments: