Insurelane Insurance Blog

The United States National Flood Insurance Program will expire at the end of September and even though it’s in debt by about $18 billion, many insurance industry professionals feel the program should be extended by Congress. They point to the recent Hurricane Irene as a prime example why it shouldn’t be shelved for good.

The National Flood Insurance Program (NFIP) offers flood insurance at affordable rates to Americans who live in specific at-risk regions of the nation. The Senate Banking Committee approved its own version of an insurance bill which would see the coverage extended for a few more years and earlier this year a bill was passed by the House which would see the program extended for five more years.

However, some lawmakers feel the NFIP actually subsidizes risky home construction and building and is in too much debt as it is. A coalition that concentrates on dealing with nationwide catastrophes called Smarter Safer recently sent a message to Harry Reid -Nev), who is the Senate Majority Leader.

Smarter Safer said it believes that the bill should be strengthened and there are several other stakeholder groups that feel the NFIP should be given a few more years. Another organization that is hoping the national flood insurance program is extended and supports the legislation is the American Land Title Association. They urged Congress this summer to make sure the coverage is still available to homeowners for the next few years.

Kurt Pfotenhauer, who is the CEO of the American Land Title Association, said houses are a homeowner’s biggest investment and they won’t be able to protect it if them if they aren’t offered insurance at an affordable price. This would leave taxpayers holding the bill for the cost of reconstruction.

He added that over five and a half million US families are depending on the NFIP since it’s their only source of affordable flood protection. According to an article by housingwire.com, with coverage in place, Pfotenhauer feels the program ensures that future development and real transactions will continue to help out the struggling economy.