On May 13, 2008, the Senate passed its version of the Flood Insurance Reform and Modernization Act of 2007 (the “Act”) that would extend the National Flood Insurance Program (“NFIP”) through 2013. The NFIP is set to expire in September unless renewed.
As we previously reported here, the Senate’s version of the Act, unlike the version passed by the House of Representatives in October of 2007, makes no provision for windstorm coverage. Additionally, the Senate’s version forgives the $17 billion debt incurred by the Federal Emergency Management Agency during Hurricane Katrina, whereas the House of Representatives’ version does not.
Members of the Senate and House of Representatives must now work together and compromise on the final form of the Act before it can be sent to President Bush for his signature. As previously noted here, President Bush has vowed to veto any form of the Act includes provisions for windstorm coverage.
For a copy of the Senate’s press release, click here. We will continue to monitor NFIP-related developments and provide updates at InsureReinsure.com.
