Legislators seek to extend the life of NFIP by combining laws
The U.S. House and Senate are currently working to finalize an agreement that would combine a number of legislations under the proposed Highway Bill. The bill was introduced as a way to solve some of the problems with the country’s transportation infrastructure – namely the country’s roadways. The bill has, for some time, been a point of contention amongst politicians for various reasons. Now, legislators are working to make the bill more attractive universally by combining legislation that would extend the life of the National Flood Insurance Program and government-subsidized student loans into the bill.
Extension for NFIP could produce solutions to its problems
Legislators have been working for years to solve the problems facing the National Flood Insurance Program (NFIP). The program is riddled with financial problems that are threatening to spiral out of control. Currently, NFIP is indebted to the federal government for more than $18 billion. The legislations being lumped in with the Highway Bill aims to extend the life of NFIP through the end of 2016, allowing legislators more time to address the issues of the beleaguered flood insurance program.
Program widely believed to be the last place for affordable flood insurance
NFIP is often considered the last place for homeowners in risk-prone areas to find affordable flood insurance coverage. Indeed, the program is capable of issuing flood insurance policies at lower rates than other insurance providers, but these lower rates have translated into lower profits. The amount of money the program is able to pull in has been offset by two consecutive years of powerful natural disasters that have cause widespread flooding in some parts of the country. NFIP is still struggling to recover from 2005’s Hurricane Katrina as well, making its future somewhat unpredictable.
Four-year extension may be a boon for legislators
Both the House and Senate are expected to vote on the Highway Bill before the end of the month or in the beginning of July. If the bill is passed, the flood insurance program will be upheld for the next four years. Some legislators believe that this four-year period will be enough time to finally solve the problems of the country’s flood insurance program.