Anna Maria Island Real Estate Sales Blog

Once again, Congress has passed a stop-gap measure to authorize flood insurance for the next few months. There are a few differences between the House and Senate bills going forward, but not too much.

Perhaps it would be worthwhile for those of us (like residents of Anna Maria Island) who buy flood insurance for our homes, to ask those two legislative bodies to get it together.

Here's the latest story:

With NFIP May extension complete, industry eyes long-term reforms

WASHINGTON – Jan. 5, 2012 – Congress passed, and President Obama signed, a four-month extension of the National Flood Insurance Program (NFIP) that now expires on May 31, 2012. The measure was part of H.R. 2055, the “Consolidated Appropriations Act,” signed Dec. 23, 2011.

Since 2002, NFIP has had 15 last-minute extensions and been allowed to lapse four times for extended periods of time.

Some insurance experts do not think the U.S. Senate will pass the House version of a long-term NFIP extension, which would authorize the program through Sept. 30, 2016. While the House and Senate have differences, both have bills that allow the Federal Emergency Management Agency (FEMA), which administers the flood insurance program, to buy private reinsurance and a provision to tighten subsidies that the program provides.

Some insurers, however, have voiced concerns about provisions that would provide FEMA with greater flexibility in paying its bills, especially in the Senate bill that would allow homeowners to pay their bill either annually or in installments. The House bill allows FEMA to determine whether homeowners pay annually, quarterly or monthly.

Source: PropertyCasualty360 (01/02/12) Postal, Arthur D.

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