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.

Language forgiving the debt has been included in both the House and Senate versions of flood reform legislation, which is currently pending. When losses exceed the NFIP's ability to pay, the program is allowed to borrow from the Treasury to pay claims.

The current flood catastrophe is not expected to cause financial woes for NFIP, according to Mr. Kinerney. “The fact is we just don't have a whole lot of policies out in that area,” he said. As an example, he pointed to Cedar Rapids, Iowa, which was among the worst hit cities. There are “fewer than 700 policies” in force there, he said.

The NFIP is overseen by the Federal Emergency Management Agency, and Mr. Kinerney said much of the expense related to the recent flooding will be borne out in disaster assistance.

Much of the flooding, Mr. Kinerney noted, has gone over the levees and other antiflood measures designed to prevent flooding. Because those measures had been put in place, however, those living behind them were not required to purchase flood coverage.

“We try and we try and we try” to encourage homeowners to think about their flood risks even if they aren't required to purchase coverage, he said. “A lot opt not to worry about it until after something happens.”

It is currently too early for the NFIP to have a full, or even estimated notion of flood claims, Mr. Kinerney said, noting that insurers have up to 60 days after an event to submit their claims information. However, he said the financial impact for the NFIP would likely be small, and that the program will be able to cover claims without having to borrow funds from the Treasury.

“I don't think it's going to be an issue for this event,” he said. “We just don't have the penetration.”

Earlier this month, House Financial Services Committee Chairman Barney Frank, D-Mass., asked speaker Nancy Pelosi, D-Calif., to begin the process of negotiating a final flood reform bill by naming members to a conference committee that would work with members of the Senate on combining the measures from the two houses.