Chicago – Industry associations are using the third anniversary of Hurricane Katrina to renew calls for re-authorization of the National Flood Insurance Program (NFIP).
“Residents affected by Hurricane Katrina—and the American public at large—will never forget the devastation incurred by the storm,” says David Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI). “Congress must act now to reauthorize the National Flood Insurance Program to protect those who live in areas at risk.”
If the House and Senate do not pass identical bills for a presidential signature by Sept. 30, the flood program will expire. Legislation included in the NFIP reauthorization is critical to those at risk of repeated damage, as it extends the severe repetitiveness loss buy-out program until 2013, and would eliminate rate subsidies for repetitive loss structures going forward, PCI says.
Floods are the most common natural disasters to occur in the United States, and the NFIP provides 5.5 million taxpayers with needed flood insurance coverage.
If Congress fails to reauthorize the NFIP, the federal government will still be called on to provide aid to taxpayers following significant flooding events, but it will not have the support of more than $2.85 billion in annual premiums paid by flood policyholders, PCI notes.
Source: Property Casualty Insurers Association of America
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