National Flood Insurance Program Receives Umpteenth Extension
On Thursday night, the National Flood Insurance Program received another extension after being passed in Congress with a House vote of 289-112 and signed by President Barack Obama. Now that flood insurance has been extended again – this time until the end of May 2010 – one has to wonder when Congress will finally make their extension permanent.
What’s Up with the National Flood Insurance Program?
The National Flood Insurance Program (NFIP) is a program governed by FEMA that offers flood insurance to homeowners, business owners and renters around the country who live or work in flood-prone areas. Anyone can purchase this coverage, and many experts say this is wise, because floods aren’t covered by homeowners insurance and can threaten any area.
Flood insurance is offered by private insurers and is backed by the NFIP. However, for the past few weeks, it hasn’t been available for purchase or renewal, leaving many homeowners vulnerable to floods, because Senate members failed to extend the program as they had in March, effectively allowing it to expire.
When the Temporary Extension Will Become Permanent
Now that they program has received yet another short-term extension, one has to wonder when Congress plans to make the extension permanent. Congress members maintain that the plan is to permanently extend the flood insurance once they determine whether windstorm coverage should be included.
Hopefully, they will decide on a long-term solution sooner than later so that the lapse in home insurance coverage won’t have to occur again.