Categorized | Finance and Mortgage

Flood Insurance Still On Life Support

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Flood Insurance provided by the National Flood Insurance Program got a 30 day extension on Thursday, May 17th only 16 days before it was set to expire at the end of the month.  The House of Representatives passed an extension of the Flood Insurance Program until June 30th and moved the pressure off to the Senate who will now have to work out it’s differences about the program.  This continues a pattern of short extensions of the program while Congress tries to figure out what to do with it.

Flood Insurance is provided to millions of people by the National Flood Insurance Program, where in Louisiana it covers over 500,000 residents.  The government ran program was created in 1968 to provide flood insurance to residents where it is mandatory.  It is ran by the Federal Emergency Management Agency, commonly known as FEMA.  The main purpose is to allow residents a concrete way to obtain flood insurance when private insurance companies have normally flaked out of the responsibility.  However, about 7 years ago when Hurricane Katrina hit the southern United States, it basically sent the government program into the red and has cost tax payers billions of dollars.

Congress is trying to work out a plan of action to allow private insurance companies to enter the mix and provide flood insurance to flood prone areas such as southern Louisiana.  Also, some Congressional Representatives have issues with the flood mapping process that determines when a resident would be required to carry flood insurance.  U.S. House of Rep. Tom Reed (R-NY) is leading this protest, stating that FEMA is not listing levees built by the Army Corps of Engineers on the flood maps and thus requiring some residents to purchase flood insurance when in fact they should not be required to do so.

 

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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