Flood Insurance Program Receives Extension

With flood season approaching, new legislation has extended funding for the National Flood Insurance Program through March 28, according to a report by Insurance Journal.

The program had recently lapsed after Senator Jim Bunning blocked the passage of a $10 billion bill dealing with unemployment benefits, transportation projects and other federal initiatives, citing unclear funding.

NFIP, which is operated by the Federal Emergency Management Agency, warned policyholders that such a hiatus could take place if Congress failed to pass its renewal. The lapse prevented issuance of new policies, renewal of policies and increases in coverage.

The extension was passed in the Senate with a vote of 79-19, according to the report. President Barack Obama also signed the measure.

"We applaud the Senate for recognizing the urgency in extending the National Flood Insurance Program," David Sampson, president and CEO of the Property Casualty Insurers Association of America, told the journal. "This vitally important program protects over five million families across the country."

Damage from flooding is not usually covered by home insurance policies. State officials in the Midwest, Mississippi and Florida recently urged homeowners to purchase home insurance, which takes 30 days to be effective.

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