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Congress Allows Flood Insurance Program to Lapse As Hurricane Season Begins

At midnight on June 1, the 2010 Atlantic hurricane season started. At the same moment, the National Flood Insurance Program (NFIP) lapsed because Congress adjourned...
June 3, 2010

At midnight on June 1, the 2010 Atlantic hurricane season started. At the same moment, the National Flood Insurance Program (NFIP) lapsed because Congress adjourned without reauthorizing the program. It's the fourth time this year that Congress has allowed the NFIP to slip into lapsed status.

Efforts to extend the program past its May 31, 2010 scheduled expiration collapsed in the Senate last Thursday night, when Majority Leader Harry Reid announced that there would not be a vote taken on legislation to extend the NFIP and other programs until the week of June 7. Congress subsequently adjourned for its Memorial Day recess.

While no new policies can be issued during a lapse in NFIP authorization, consumers with current flood insurance policies remain covered. Claims payments are not affected.

The NFIP issued  this guidance bulletin issued on May 28, 2010.

PIA agents who offer flood insurance through the Hartford Flood program can get additional information at: www.hartfordfloodonline.com.

Meanwhile, between 14 and 23 named storms have been predicted for the 2010 Atlantic hurricane season, with between eight and 14 hurricanes and three and seven major hurricanes possible, according to the National Oceanic and Atmospheric Administration (NOAA). Two bills pending in Congress would extend NFIP, one for five years and one through December 31.

What It Means to Agents: Allowing the NFIP to lapse repeatedly because lawmakers fail to reach consensus is irresponsible, as is renewing the flood program for only weeks or days at a time. Letting the flood insurance program expire as the hurricane season gets underway is additionally irresponsible.

Click here to send a customizable message to your Members of Congress, asking them to support a long-term renewal of the flood insurance program.

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