National Flood Insurance Program Gets Short-Term Extension

Congress passed a measure extending the National Flood Insurance Program through Sept. 30, 2009, under the omnibus appropriations bill.

The NFIP extension was set to expire at 11:59 p.m. on March 6, but Congress passed a continuing resolution to extend funding to federal programs under the omnibus bill, including the NFIP through March 11. Then on March 11, Congress passed the omnibus bill, which ensures a temporary extension of the NFIP until further reform can be debated.

If the NFIP had expired, agents and brokers would have no longer been able to write, renew or endorse NFIP policies.

“Allowing the program to expire would have very negative consequences for policyholders and also for the nation’s economy,” said David A. Sampson, president and CEO of the Property Casualty Insurers Association of America.

Insurers and other industry groups hope that more work will be done to provide a long-term solution to problems that have plagued the NFIP for years.

“We will work closely with the House and Senate to advocate a long-term extension that preserves the program’s viability and does not needlessly expand its scope into other areas, such as windstorm insurance, where coverage is already available through private industry or state programs,” Sampson said.