The U.S. Senate passed a temporary reauthorization of the National Flood Insurance Program (NFIP) late Tuesday March 2. The NFIP had lapsed at midnight on February 28, 2010 after Sen. Jim Bunning (R-Ky.) blocked passage of a bill under unanimous consent to extend unemployment and COBRA benefits. The extension of the National Flood Insurance Program (NFIP) was attached to that bill. Sen. Bunning withdrew his objection after intense pressure from many of his colleagues on both sides of the aisle.

The new extension for NFIP is only until March 28, 2010.

According to a memo written by officials of the Federal Insurance and Mitigation Administration/Risk Insurance Division, of the Federal Emergency Management Agency, the interruption of the flood program meant that claims could not have been paid while it remained in legislative limbo.

What It Means to Agents: This is only a short reprieve for the flood insurance program. Congress continues to pass short reauthorizations that fail to address the need to enact comprehensive reforms. In order to do that, a longer authorization is necessary. PIA believes that the next NFIP reauthorization should be for at least six months – with a one-year extension an even better way to ensure that there is enough time to accomplish meaningful reforms.

March 4, 2010