This post is an update to our postings on October 2 and October 22, 2007 regarding the proposed legislation to extend the National Flood Insurance Program (“NFIP”).  The NFIP is set to expire in September unless renewed.

On May 5, 2008, the Senate voted against an amendment to the Flood Insurance Reform and Modernization Act of 2007 (the “Act”) that would have expanded the NFIP to provide for windstorm coverage in addition to flood coverage.  The version of the Act before the House of Representatives currently contains such provision.  Some insurers and the Bush administration have expressed their opposition to the inclusion of windstorm coverage, while support for the inclusion of windstorm coverage mainly comes from legislators in coastal areas.

It is expected that the Senate will hold vote on the Act next week, which as drafted would extend the NFIP through 2013 and forgive the Federal Emergency Management Agency’s (“FEMA”) $17 billion debt incurred during Hurricane Katrina in 2007.

We will continue to monitor NFIP-related developments and provide updates at InsureReinsure.com.