The National Flood Insurance Program seems to have avoided expiration again, as federal legislators passed a new short-term funding bill that would keep the program afloat until December 16 of this year. The program has been burdened by crippling debt since 2005’s Hurricane Katrina. The majority of people in the U.S. have flood insurance provided by the program, which has put pressure on lawmakers to fix the program before these people lose their insurance coverage. Fixing the program, however, seems to be easier said than done. NFIP was scheduled to…
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Legislators look to revoke insurance mandate on areas protected from floods
Two legislators are looking to reverse federal flood-insurance mandates requiring property owners in areas protected by flood-control structures to have flood insurance. Senators Thad Cochran of Mississippi and Mark Pryor of Arkansas say that the mandate presents an undue financial burden to those living in areas that are not prone to floods due to the protective measures taken against such a happening. The legislation in question is part of the National Flood Insurance Program, which itself is the subject of much debate in Congress due to its financial instability. The…
Read MoreUnderstanding how flood insurance protects your home and belongings
Flood insurance is a form of protection that provides coverage for a home and the possessions it contains, in case they should ever be damaged or lost as a result of water rising from an outside source. Though standard homeowners insurance will usually protect against flooding due to a broken pipe, for example, it would not cover damage from water that flowed into the home from a rising river, creek or even rain. While many homes are not located within areas that are recognized as having a high flood risk, those…
Read MoreCongress approves short-term National Flood Insurance Program fix
In Washington D.C., Congress has given the nod to an extension of the National Flood Insurance Program (NFIP), to maintain it until November 18, 2011, after having failed to pass a reforming bill for the program. It is hoped that this extension will provide enough time for a reported deal to close, which is supported by both parties. What this means to homeowners in any of the 20,000 communities that take part in the NFIP, is that if you will be purchasing a home or if you are attempting to…
Read MoreSenate passes bill to prolong the National Flood Insurance Program for a short period while trying to resolve issues
Recent storm bringing widespread flood damage have brought the issue of flood insurance into the limelight. Despite it being required in some areas prone to flooding, flood insurance is rare throughout the country. Many insurance companies do not offer such coverage because the potential for loss. Those that do offer the coverage do so at a high price, making it, in some cases, unaffordable for homeowners. Complicating matters is the ailing National Flood Insurance Program, which is meant to provide consumers with affordable access to flood insurance. The program is…
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