Posted on 16 Dec 2009
The Property Casualty Insurers Association of America (PCI) urges Congress to pass an extension of the National Flood Insurance Program before it expires on December 18.
Congress passed a PCI-supported short-term extension in September that moved the expiration deadline for NFIP to December 18, 2009. But if Congress fails to act again this week, the main source of protection against flooding for more than five and a half million homeowners could be in jeopardy, potentially costing the government and taxpayers billions of dollars.
“PCI urges Congress to extend the NFIP this week,” said David A. Sampson, president and CEO of PCI. “The expiration of the flood insurance program could have severe consequences on the economy and directly impact consumers.”
“We cannot afford to compound the economic challenges our nation already faces by allowing the NFIP to lapse,” said Sampson. “If NFIP expired, real-estate transactions in flood-prone areas could collapse, resulting in even more devastation for the housing market.”
PCI supports the long-term reauthorization and reform of the NFIP, which would need to be addressed in separate legislation in 2010. “We will continue to work with Congress to move long-term solutions for the flood program to restore its fiscal soundness,” Sampson said. “We look forward to collaborating with the House and Senate on a long-term reauthorization that will protect families, homes and businesses for many years to come.”