National Flood Insurance Program Expires [UPDATED]

[ORIGINAL MARCH 1 POST]:
Nothing to panic about (we don’t think), but the US Senate failed to pass a reauthorization of the National Flood Insurance Program (NFIP). As a result, the NFIP officially expired last night.

FEMA, meanwhile, released an announcement last Friday expressing its confidence that the program will be reauthorized when the Senate reconvenes tomorrow. Others are guessing longer. Either way, the current bill would only extend the NFIP for a month, until March 28.

What does this mean for the NFIP’s 5.6 million policy holders? Not much, if FEMA’s predictions are correct. While the NFIP is on hiatus, nobody can:

  1. Issue new policies
  2. Issue increased coverage on existing policies
  3. Issue renewal policies

However, Congress is expected to make coverage retroactive to ensure that there is no lapse in coverage.

Need more official information? Check out the FEMA press release.

UPDATE: The Senate passed H.R. 4213 on Wednesday, March 10th. The bill would extend the NFIP through December 31, 2010. The bill now moves back to the House.

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