NFIP Extension is a Stop-Gap Measure

Late in the day yesterday President Obama authorized an extension of the National Flood Insurance Program until September 30. This reprieve comes as welcome news to NFIP’s more than five million policyholders, as NFIP has lapsed three times this year. The extension also offers another measure of stability to the real estate market. “Today’s signing will come as a relief for millions of Americans who could be affected by floods or just wish to buy or sell a home,” said Jimi Grande, senior vice president of federal and political affairs for National Association of Mutual Insurance Companies.  But for small businesses that own or lease commercial properties in flood zones, the uncertainty continues. The NFIP is $18 billion in debt and no measures have been taken to assure its long-term solvency.  Long-overdue reforms, such as the inclusion of wind coverage and optional business interruption insurance remain unresolved. We need to keep the pressure on our elected representatives for a long-term solution for sustainable insurance cover.