Congress Still Unable to Agree on NFIP, Considers Short-Term Extension

As previously reported here, the National Flood Insurance Program (“NFIP”) is due to expire at the end of this month.  With the House of Representatives and Senate still at odds over key provisions, Rep. Barney Frank (D-MA) has introduced a bill, H.R. 6965, which would temporarily extend the NFIP for an additional seven months.

In renewing the program long term, the House of Representatives wants to expand the NFIP to include windstorm coverage, while the Senate is against such expansion and wants to include a provision to forgive the $17 billion debt incurred by the Federal Emergency Management Agency (FEMA) during Hurricane Katrina.  Meanwhile, President Bush has vowed to veto any extension of the NFIP that includes provisions for windstorm coverage.  Congress has been debating these issues since October 2007 when competing extensions were introduced in both houses.

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