National Flood Insurance Program Suspended

06/01/10

The federal National Flood Insurance Program has expired for the fourth time within a year.

The NFIP expired on May 31 and may not be able to write new policies for at least a week, Insurance Journal reported. In an act similar to one earlier this year, Congress left for a break before taking steps to reauthorize legislation concerning the program.

The earliest Congress is expected to broach the subject again is June 7, but most experts see that date as unlikely. There is currently legislation in both the Senate and the House of Representatives that would extend the NFIP until the end of this year, Insurance Journal said. This is not good timing, considering today is the official start to the Atlantic hurricane season.

Robert Rusbuldt, president and CEO of the Independent Insurance Agents and Brokers, said that "lapses in this program cause confusion and leave many homeowners and small businesses unprotected during a very dangerous time."

Homeowners living in high-risk flood zones should always check their insurance policies to see if coverage is included. If not, a separate policy should be purchased to protect against any damages from this natural disaster.

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