WASHINGTON–Despite images of flooded Midwestern towns filling the news over the past few days, the devastation being wrought by rising waters is not expected to produce significant claims that further reduce the coffers of the National Flood Insurance Program.
Butch Kinerney, a spokesman for the NFIP, said that total losses for the NFIP are “so far unknown,” but that expectations are low given the low numbers of policyholders in the region.
NFIP incurred roughly $20 billion in debt after borrowing from the U.S. Treasury in the wake of 2005 Hurricanes Katrina and Rita, and has acknowledged that it will not be able to even pay the interest on that debt while paying ongoing claims.
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