Posted on 01 Oct 2010
Averting what would have been another shutdown of National Flood Insurance Program (NFIP), President Obama late Thursday signed into law legislation extending the program for one year.
"We are pleased that President Obama has signed this important bill,” said David Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI). “This legislation directly impacts the over 5.5 million Americans who rely on the NFIP to protect their homes and businesses.”
S. 3814 will extend the NFIP through September 30, 2011. Without S. 3814, the NFIP would have expired at midnight tonight. The bipartisan bill was sponsored by Senator David Vitter (R-LA) and co-sponsored by Sens. Lamar Alexander, (R-TN), Saxby Chambliss (R-GA), Kay Bailey Hutchinson (R-TX), Johnny Isakson (R-GA), Mary Landrieu (D-LA) and Bill Nelson (D-FL).
“The NFIP is currently saddled with over $18 billion in debt,” said Sampson. "While this bill was an important first step, Congress will still need to address meaningful NFIP reforms in 2011.”
Floods are the most common natural disasters to occur in the United States. The NFIP provides over 5.5 million Americans with vital protection from devastating floods associated with hurricanes, tropical storms, heavy rains and other conditions that impact the U.S. Standard homeowners insurance does not cover flooding and must be purchased through the NFIP.