Unfortunately, the Senate has once again voted down legislation that would include extending the government subsidized flood insurance plan. All Flood insurance in the US is subsidized by the government and managed by the NFIP, which is the national flood plan. The program needs to be reauthorized regularly and it has been over 2 weeks now since it expired for the third time this year.
Unfortunately, the other provisions being added to the bill that would extend coverage have given rise to fears of increasing our ever-growing national deficit, and so it was voted down, leaving millions of Americans vulnerable in this new 2010 hurricane season.
Here is a brief article from the Insurance Journal on the issue.
Because the program was not reauthorized, the NFIP nor it's agents cannot issue new policies, increase coverage, approve renewal policies or pay claims.
It is very frustrating for us, as agents, because we have no other options for our customers for Flood insurance. If you are affected by this issue, you should try to contact your congressional representative and urge them to stop the short term extensions and seek to provide consistency and dependability to the NFIP.
Also, you should urge them to support HR5114, a Flood Insurance Reform bill that would provide a multi year extension of the NFIP through 2015, promote a phase-in of actuarial rates increases coverage limits and add additional living expense coverage to flood insurance policies.
Here are links to help you find your representatives:
House of Representatives by State
I will definitely post when the plan is authorized once again. Here's hoping we get a longer term solution this time.
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- Once Again Flood Insurance is NOT Reauthorized