Congress Extends Flood Insurance
Washington Editor
Legislation extending the National Flood Insurance Program for five years has been approved by the House of Representatives and is now on its way to the President's desk.
By voice vote, the House passed S. 2238, which had earlier been approved in the Senate by unanimous consent.
NFIP extension is strongly supported by the insurance industry.
The legislation extends NFIP through Sept. 30, 2008, and for the first time establishes mitigation procedures requiring homeowners who have experienced repeated flood damage to take steps aimed at preventing losses.
Rep. Doug Bereuter, R-Neb., one of the primary sponsors of the legislation, said in a statement that this will “at last move the NFIP toward a more free-market insurance model by requiring people living in flood-prone areas to reduce their risk or pay higher premiums.”
Specifically, the legislation allows the Federal Emergency Management Agency (FEMA), which administers NFIP, to charge property owners up to 150 percent of current premiums if they refuse to take steps to mitigate flood damage.
In addition, the legislation authorizes FEMA to provide financial assistance to states and communities for taking actions to mitigate flood damage to repetitive loss properties.
Reproduced from National Underwriter Edition, June 25, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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