Fate of Flood-Insurance Program Still Murky
Fate of Flood-Insurance Program Still Murky
Congress is unlikely to reach a long-term agreement on the National Flood Insurance Program (NFIP) before the program expires on Sept. 30. The debt-strapped program covers flood damage not typically covered by standard homeowners' insurance.
Experts believe that lawmakers will reach another temporary fix for the program, which have kept the NFIP going since 2008. Meanwhile, the U.S. House already has passed a measure that would enable the program's premiums to rise up to 20 percent annually and make other changes to the program to improve its solvency.
The U.S. Senate, on the other hand, introduced legislation that would ensure premiums rise up to 15 percent per year and completely forgives the program's debts, which the House bill does not do. The Senate Banking Committee has plans to take up the legislation the week of Sept. 5. About 5.6 million homes and businesses are insured by the NFIP.
Source: "Fate of Flood-Insurance Program Still Murky," The Wall Street Journal (Sept. 4, 2011)
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