Federal Flood Insurance Reauthorized Until May 2012

The federal flood insurance program has been extended until May 31, 2012 under another short-term consolidated appropriations bill (H.R. 2055) passed by the House and Senate and signed into law by President Obama on Dec. 23.

Had the appropriations bill not passed, the National Flood Insurance Program’s authority to issue new or renewal flood insurance policies would have expired at midnight on Dec. 23.

Insurance agents— the Independent Insurance Agents & Brokers of America (Big “I”) — applauded the reauthorization while continuing to press for a longer term authorization and program reforms.

“It is important to note that our work on this important issue is far from over and the next few months provide ample opportunity for Congress to pass long-term extension and reform legislation that provides the necessary certainty for consumers,” said Charles E. Symington Jr., Big “I” senior vice president for government affairs.

Symington noted that Congress has traditionally extended the program for five year periods in order to provide stability for the marketplace; however, for the last few years Congress had only extended the program for short periods, mostly from 30 days to six months.

“Today’s extension, although greatly appreciated, is just a temporary patch,” said John Prible, Big “I” vice president for federal government affairs.