|Federal Information & News Dispatch, Inc.|
FEMA National Flood Insurance Program Reauthorization Needed
Agency officials Urge Congressional Action for Reauthorization
Release Number: HQ-12-31
"Without reauthorization, the NFIP will be unable to issue new policies, renew existing policies, or modify policies to increase coverage on the existing policy." said
Floods continue to be the most common and costly natural disaster in
Under the NFIP, federally backed flood insurance is made available to homeowners, renters and business owners in communities that adopt and enforce floodplain management ordinances designed to reduce future flood losses by regulating new construction. The NFIP identifies areas of flood risk; encourages communities to implement measures to mitigate against the risk of flood loss; provides financial assistance to help individuals recover rapidly from flooding disasters; and lessens the financial impact of flood disasters on individuals, businesses, and all levels of government.
Without the NFIP in place, many individuals, families, businesses and local communities will find themselves left vulnerable to the devastating effects of flooding. Property owners in high risk areas, who would normally be required to purchase flood insurance to fulfill lending requirements will be unable to obtain affordable flood insurance.
In recent years, a series of short-term reauthorizations and temporary suspensions of the NFIP have had a negative impact on the confidence in the program among citizens and stakeholders, including state governments, tribal governments, local communities, individual policyholders, mortgage lenders, and the private insurance industry.
|Copyright:||(c) 2011 Federal Information & News Dispatch, Inc.|