Congress recently approved another short-term extension of the National Flood Insurance Program (the “NFIP”) through December 18, 2009.  The NFIP extension was approved as a continuing resolution of the House and Senate as part of an appropriations bill for the Department of the Interior. The last temporary extension was approved by Senate on September 30, 2009 as a continuing resolution by the Senate as part of the House-Senate Conference Report on H.R. 2918, the “Legislative Branch Appropriations Act 2010.”

Although insurance agents and insurers commend the U.S. Congress and President Barack Obama for passing another short-term extension, industry groups believe that long-term reforms are necessary.  Insurance groups also believe that these short-term extensions should be for a longer period of time because Congress is currently occupied with other pressing matters and will not be able to re-evaluate the NFIP by the end of this year. 

Mike Becker, National Director of Federal Affairs for the National Association of Professional Insurance Agents, stated, “While we are heartened that the flood program was not allowed to slip into a technical lapse, these short extensions are insufficient to maintain certainty in the market, Congress has a lot on its plate at the moment and since lawmakers don’t have time to conduct hearings on reforms to the flood program, the program should be extended for at least another six months so that hearings can be held in a sufficiently deliberative manner.”

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