Time is running out once again for the National Flood Insurance Program, which is set to expire on Dec. 18.
Congress passed a short-term extension in September that moved the expiration deadline for NFIP to Dec. 18, 2009. But if Congress fails to act again this week, the main source of protection against flooding for more than five and a half million homeowners could be in jeopardy, potentially costing the government and taxpayers billions of dollars.
Insurers are urging Congress to pass an extension to the NFIP before it's too late.
"The expiration of the flood insurance program could have severe consequences on the economy and directly impact consumers," said David A. Sampson, president and CEO of the Property Casualty Insurers Association of America (PCI).
PCI says that a continuing resolution will likely pass today that will extend the NFIP through Dec. 23. The continuing resolution will give the Senate a few more days to work on the Defense Appropriations bill, which would now extend the program through Feb. 28, 2010.
"We cannot afford to compound the economic challenges our nation already faces by allowing the NFIP to lapse," Sampson said. "If NFIP expired, real-estate transactions in flood-prone areas could collapse, resulting in even more devastation for the housing market."
Source: PCI
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