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Flood Insurance Program to Expire Friday If Not Extended

We are now less than one week away from the authorization for the National Flood Insurance Program (NFIP) expiring. NFIP has been operating on the...
December 15, 2009

We are now less than one week away from the authorization for the National Flood Insurance Program (NFIP) expiring. NFIP has been operating on the latest in a series of short term extensions. This one was approved on October 30, extending the program through Friday December 18.

Efforts to enact comprehensive reforms to the NFIP have been stymied in recent years over two issues: proposals to add coverage for wind damage to the flood program and forgiving the nearly $20 billion debt amassed by the program as a result of catastrophic storms in 2004 and 2005. PIA opposes inclusion of wind coverage in the NFIP program and supports debt forgiveness.

Congress has been waiting until the last minute before passing these short-term, stop-gap extensions. Now, Congress will need to pass another extension. We are hopeful that the next extension will be for a longer time period, so reforms can be sufficiently debated. Ultimately, a comprehensive reform bill needs to be for a period of five years.

What It Means to Agents:  It's nail-biting time again for flood insurance. When Congress creates this air of uncertainty, it plays havoc with the nation's real estate market and consumer confidence - not what is needed as the nation struggles to pull out of a deep recession.

Prior to the last extension, FEMA and the National Flood Insurance Program (NFIP) issued instructions about what to do in the event of a lapse in NFIP authority. PIA National has also issued a memo explaining what the FEMA/NFIP actions mean and the practices PIA agents need to adhere to in the event of an interruption in this program. We suggest you review both documents, just in case.

PIA National Overview and Practice Suggestions (10/28/09)

FEMA/NFIP Memo (10/27/09)

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