WASHINGTON (May 28, 2010) Allowing the National Flood Insurance Program to lapse at the start of the 2010 hurricane season is irresponsible, the National Association of Mutual Insurance Companies (NAMIC) said today.
“Once again, the NFIP has become a victim of politics that have nothing to do with the program itself,” said Kathy Mitchell, NAMIC federal affairs director. “Allowing the NFIP to lapse just as the 2010 storm season is beginning shows a troubling lack of judgment on the part of Congress.”
Along with short term extensions for numerous other federal programs, the NFIP extension was derailed when the House amended legislation already approved by the Senate over concerns about how other provisions in the bill were funded. The package was brought to the floor just days before the programs were set to expire and after the Senate had adjourned for the Memorial Day recess, leaving no chance for an alternative plan to keep the NFIP running.
“Millions of homeowners and businesses will be left vulnerable to storm losses because of Congress’ failure to act at one of the worst possible times,” Mitchell said. “Providing protection from flood losses should be more of a priority for the government. Given the forecast for this summer’s storm season, it is unfortunate that Congress would fail to act on this issue and put millions of Americans’ financial security at risk.”
The Atlantic storm season begins 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.
“We hope that Congress will pass an extension to this vital program as soon as they return from recess,” Mitchell said.
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Posted: Friday, May 28, 2010 1:59:35 PM.
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