Here we are, first named storm of the 2010 Hurricane Season and still no resolution to the National Flood Insurance Program funding.
During previous temporary measures this year, funding for National Flood Insurance Program has been attached to the extension of Unemployment benefits measures in an attempt to add urgency to the Unemployment extension. This last attempt failed.
Why, you may ask, are we dependent upon the Government to provide this coverage? Because flooding falls in the category of Catastrophe. The losses would be so vast and concentrated that it would be mathematically impossible for any one private entity to have enough reserve cash to cover the potential losses.
What's the hold up? One problem is the program is deeply in debt since Katrina and passing legislation that contains debt is not exactly popular right now. Others don't see the need to government fund a program that only a small percentage of American's use.
The frequently asked questions from clients are:
•· What if I've applied for coverage since May 31st? National Flood Insurance is holding your application and once the Government funds the program, they will process the applications which have been submitted.
•· If I have a current flood insurance policy, am I covered now? Word is that existing policies are not affected, only new applications.
•· I'm scheduled to renew my policy now and I've sent in my check. Am I covered? Again, National Flood Insurance is holding your application and once the Government funds the program, they will process the renewals which have been submitted.
People have to live on the coast to work on the coast. In the case of Coastal Texas we have a high concentration of refinery's and cargo shipping which benefit all American's.
HR5569 has passed Congress. Will our Senators do the right thing?
For a quote on flood insurance visit my web page at www.PaulaSmithInsurance.com
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