Federal Insurance Plan Extension Passed Until March ’09

The Senate gave final congressional approval over the weekend to legislation to extend the troubled U.S. flood insurance program until March 6, 2009.

Published on September 30, 2008

Passed by the House of Representatives on Tuesday, the measure, which requires the approval of President George W. Bush, would give lawmakers time to try to resolve disagreements over reforming the debt-burdened program.

The short-term extension would prevent the National Flood Insurance Program from expiring as scheduled today. Expiration could further unsettle fragile U.S. housing markets by preventing mortgages in need of flood coverage from closing while the program is in limbo.

"While we would have preferred that Congress pass a long-term extension with much-needed reforms, it was vital to ensure that the NFIP would not lapse on September 30," said David Sampson, president of the Property Casualty Insurers Association of America, an industry group.