The National Flood Insurance Program Has Been Extended

Posted in Home Insurance

March 4th, 2010

President Barack Obama has signed a measure into law that would extend the National Flood Insurance Program through March 28. This extension is a part of a measure that temporarily extends a number of federal programs. If the program had not been extended, the national flood coverage program would have expired on Sunday.

H.R. 4691 Stalled in Senate

As a part of theH.R. 4691 bill, the National Flood Insurance Program was able to receive a short-term extension. Originally, the bill, which included other measures like unemployment and COBRA benefits, was stalled in the Senate when Sen. Jim Bunning (R-KY) objected to the packages $10 billion price.

However, after Bunning relinquished his hold on the measure, the Senate was able to pass the bill that had already been passed by the House. Late on Tuesday, Obamasigned the bill into law.

Why Hasnt the Program Been Extended Long-Term?

Over the past several months, the National Flood Insurance Program has seen a series of short-term extensions. The reason that the extensions dont stretch out for a long period of time is because the House and Senate cant seem to agree on whether the program should be expanded to include windstorm coverage in addition to the standard coverages of flood insurance.

Currently, insurers oppose this provision, which has caused a battle in Congress. The good news is that those who need flood coverage can still get it despite the disputes and high home insurance rates. Maybe before this extension expires, a more permanent solution will have been solidified.