Staff Report
Published Sept. 14, 2010

The National Flood Insurance Program is set to expire Sept. 30, and trade groups are urging Congress to reauthorize it.

Since 2008, the National Flood Insurance Program has been operating under a series of short-term extensions. This year alone, Congress has already allowed the program to lapse four times. During these lapses, new flood insurance policies could not be written, delaying thousands of real estate transactions per day in flood-prone regions.

“Lawmakers needs to make flood insurance a top priority when Congress returns next week,” said David Sampson, president and CEO of the Property Casualty Insurers Association of America. “Coastal residents are heeding storm warnings and preparing their homes and families for the possibility of severe weather this year. Now is the time for the federal government to do the same and reauthorize the National Flood Insurance Program.”

The program provides 5.5 million Americans with protection from floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact the United States. Standard homeowners insurance does not cover flooding and must be purchased through the national program.

With more than $18 billion in debt, the Property Casualty Insurers Association is advocating for reform of the flood insurance program. On July 2, President Barack Obama signed into law the latest short-term extension, following a four-week program hiatus.