IIABA Warns Consumers To Renew Flood Insurance
NU Online News Service, Dec. 27, 1:30 p.m. EST--The Independent Insurance Agents & Brokers of America is urging its members to advise consumers that they need to pay their flood insurance premiums before Jan. 1 to avoid gaps in coverage.
Due to Congress' failure to reauthorize the National Flood Insurance Program for 2003, consumers can find themselves without flood insurance if they wait until next year, the association warned.
Robert Rusbuldt, the Alexandria, Va., based association's chief executive officer, said in a statement that premiums or new applications need to be in the hands of their insurance agent before Dec. 31 to ensure protection at the beginning of the year.
"While IIABA and many other national flood insurance program advocates are urging lawmakers to address this issue immediately in the new Congress, a lapse in the NFIP is imminent and could cause serious problems for homeowners whose policies are not issued or renewed before the end of this year," Mr. Rusbuldt said.
The situation, IIABA said, primarily affects property owners who need to renew policies in January, home-buyers who must purchase flood insurance as a condition for obtaining mortgages form federally regulated lenders, and property owners looking to refinance their mortgage.
"If you are planning to close on your house in early January, make sure you pay your flood insurance premiums now," Mr. Rusbuldt advised consumers. "Otherwise, this situation may complicate those plans."
Until the 108th Congress reauthorizes the program, the NFIP will not have authority to issue new policies, renew policies, or increase coverage.
Rep. Mike Oxley, R-Ohio, who chairs the House Financial Services Committee, and Barney Frank, D-Mass., the committee's ranking Democrat, said they would offer legislation to reauthorize the program the first day Congress convenes on Jan. 7.
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