National Flood Insurance Program In Financial Mess....

For years, flood victims would awaken to a nasty reality, namely that the flood damage to their home wasn’t covered by their regular homeowners’ insurance policy.  The bills racked up by such damage were considerable, leaving families facing financial ruin as well as that of their property and possessions. 

Fortunately, there was an answer, if people had the forethought and presence of mind to search for it.  The National Flood Insurance Program (NFIP) was a government sponsored endeavor designed to provide appropriate flood coverage to individuals living in flood prone areas of the country.  Of course communities had to sign up for the program before their residents would be eligible to take part in it, but at least now there was a way for property owners to have some measure of coverage in the event of their homes or businesses being damaged or destroyed by flood waters.

Until recently anyway, when news reports surfaced raising doubts about the continued viability of the program.  The agency currently owes the federal government nearly $18 billion, and taxpayers cannot afford to keep funding it.  Of course the shuttering of the program would leave homeowners having to pay out of pocket for all flood damage incurred.

The US House Of Representatives, however, have recognized the need for the continuance of this program, and voted within the last two weeks to extend it for at least five more years, while implementing changes that will make sure it remains financially solvent.  The bill now goes to the Senate, and if approved, would extend the program to September 30, 2016.

The legislation provides for the program’s financial future by increasing its income by $4.2 billion over a period of ten years,  mostly through the implementation of private sector mechanisms such as marginally higher rates and deductibles for properties, as well as removing some of the barriers that have prevented private insurers from competing in the market.

Amendments to the legislation include the requirement of coastal representation on the group responsible for revising flood maps, as well as the ability for claimants to view the documents officials use to determine whether or not flooding caused their property damage. 

There is a long way to go before the bill is acceptable, however, and the expiration date is on the horizon.  The Senate will need to make any appropriate changes and improvements to the bill to make sure the NFIP is properly provided for and funded in the coming years.

Water Damage Local.com is the country’s leading provider of water damage restoration services, from water removal and extraction, to carpet drying and cleaning, mold removal, and structural repair and restoration.  Water Damage Local.com is the first best choice for all things water damage, available 24/7, with complete staff and trained professionals proficient on the latest equipment and procedures.

Don’t be caught unawares…..make sure your neighborhood participates in the National Flood Insurance Program and contact Water Damage Local.com for a free estimate or phone consultation.