Voluntary Market Assistance Plan Could Protect Washington Businesses from Flood Damage

04/12/2010

Homeowners and businesses located in flood plains may be able to insure against water damage by purchasing a policy through the National Flood Insurance Program, operated by the Federal Emergency Management Agency.

Coverage caps for businesses may prevent them from getting the protection they need, according to Washington Insurance Commissioner Mike Kriedler. With this in mind, he has asked insurers to take part in a voluntary market assistance plan that would target Green River Valley companies.

About 200 insurers have been asked to take part in the program, which was delivered to and signed by Governor Chris Gregoire in March.

"Availability of insurance for loss arising from flooding in the geographical area protected by any dam is vital to the economy of the state of Washington," the bill said. "If adequate property insurance for loss arising from this flood is not available, the security of citizens' property and the viability of business operations and services are threatened."

A lapse in NFIP is currently preventing homeowners from purchasing or renewing their flood insurance policies. Congress is expected to soon vote on a bill that would extend the program through the end of 2010.

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