WASHINGTON (July 1, 2010) The National Association of Mutual Insurance Companies (NAMIC) welcomed Senate approval of legislation reauthorizing the National Flood Insurance Program through September passed by the House last week.
“After more than four weeks, we are pleased that the Senate has finally addressed the reauthorization of the National Flood Insurance Program,” said Jimi Grande, NAMIC senior vice president of federal and political affairs. “The Senate’s approval will come as welcome news for the thousands of Americans waiting for the NFIP to be reauthorized so they can buy or sell a home, or protect the one they have.”
It has been estimated that for each day the NFIP remains in limbo, approximately 1,400 closings for home purchases must be delayed. Such delays can add significant costs for buyers and sellers, and threaten the housing economy that has only just recently started showing signs of recovery.
The NFIP expired as of June 1, which also marked the beginning of the 2010 storm season. The Atlantic storm season began June 1, and the National Oceanic and Atmospheric Administration has forecasted that 2010 will be among the most active seasons ever. The NOAA predicts that 2010 will see 14 to 23 named storms, with eight to 14 of those developing into hurricanes. Of those, the NOAA has said that three to seven may develop into Category 3 or above hurricanes with winds of over 110 miles per hour.
“The hurricane season runs two months beyond the NFIP’s new Sept. 30 expiration date,” said Grande. “Congress must not let the program lapse again, but that’s just the minimum. The best thing they can do is take this time to pass legislation that would implement common sense reforms and help the NFIP make the first steps towards financial soundness.”
HR 5114, sponsored by Rep. Maxine Waters, D-Calif., is awaiting action by the House and would reauthorize the NFIP for five years. “The reforms in this legislation have broad bipartisan support. We’ve seen the NFIP lapse because of politics four times since December, now is the time for Congress to enact long term NFIP reauthorization and reform make sure those lapses never happen again.”
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Posted: Thursday, July 01, 2010 3:40:38 PM. Modified: Wednesday, September 08, 2010 12:41:38 PM.
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