As we previously reported here, Rep. Barney Frank’s (D-MA) bill, H.R.6965, which would temporarily extend the NFIP for an additional seven months, was passed by the House of Representatives and the Senate.  The National Flood Insurance Program (“NFIP”) was set to expire at the end of September.  Now Congress will have until March 2009 to decide whether the NFIP should be expanded to include windstorm coverage, and whether the $17 billion debt incurred by the Federal Emergency Management Agency (FEMA) during Hurricane Katrina should be forgiven.  With President Bush’s vow to veto any extension of the NFIP that includes provisions for windstorm coverage, Congress may wait until the next presidential administration begins in January to revisit the possibility of a non-temporary extension.

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