Flood Insurance Process Temporarily Interrupted Fema: Act Now To Protect Your Home!
Release Date: December 23, 2002
Release Number: R10-03-20
Seattle, WA -- On November 22, Congress adjourned without certain aspects of the National Flood Insurance Program (NFIP) having been reauthorized. Although this has no effect on the vast majority of flood insurance policyholders, whose coverage will remain in effect during this hiatus (which runs from January 1, 2003 to the effective date of reauthorization), it does affect the NFIP's ability to write new policies and renew or increase the coverage on existing ones. FEMA is confident that Congress will move quickly to fully authorize the NFIP when it reconvenes on January 7, 2003, and will do so retroactively to January 1. According to FEMA Regional Director John Pennington, the interruption is mainly of concern to property owners who need to renew policies in early January, homebuyers who must purchase flood insurance as a condition for obtaining mortgages, and property owners refinancing existing mortgages who must purchase or renew such coverage.
"The temporary interruption will have no effect whatsoever on most of the 4.4 million flood insurance policyholders nationwide. Policies in force will remain in force, and claims under those policies can continue to be paid after January 1, 2003," said Pennington. "Even with the temporary lapse in authority, new policies can be written and existing policies can be renewed if the premiums are received on or before December 31, 2002.
Pennington went on to emphasize the importance of acting quickly to renew policies up for renewal in January, or purchasing new policies before December 31, 2002. "We're right in the middle of flood season here in the Pacific Northwest, and Mother Nature has been relatively kind to us. But, soils are saturated in many parts of the region, and the forecasts indicate more rain," said Pennington. "Just think what you would do if you only had a week to renew or purchase car insurance? For home owners and renters here in the Pacific Northwest, flood insurance deserves the same sense of urgency."
Last Modified: Wednesday, 27-Aug-2003 14:45:39