President George W. Bush signed into the law the “National Flood Insurance Program Reauthorization Act of 2004,” to extend the National Flood Insurance Program (NFIP) without any changes, until March 31, 2004.
“The NFIP is an important program to millions of homeowners, prospective homebuyers and business owners across the country who must purchase flood insurance coverage. While we are encouraged by the enactment of legislation to extend the program, Congress must also recognize the critical need to bring certainty and stability to the program by acting ona permanent extension. This action is key to helping sustain a healthy homebuyers’ market, which positively impacts the overall U.S. economy,” said Carl Parks, senior vice president government relations.
NAII understands the goal of some in Congress by passing this three-month extension to force federal lawmakers to examine the substantive issue of how the program handles repetitive loss properties. NAII supports ongoing efforts to address this issue and will work with Congress to do so; however, NAII supports, and Congress must be mindful of, the need for multi-year extension such as the five-year extension originally passed by the House.
The U.S. Congress established the NFIP with the passage of the National Flood Insurance Act of 1968. The NFIP is a Federal program enabling property owners in participating communities to purchase insurance as a protection against flood losses in exchange for State and community floodplain management regulations that reduce future flood damages.
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