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The u.s. national program of flood insurance risk of default

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November 28, 2018 09:30

Photo : Freepik

If the u.s. Congress does not act by 30 November, the u.s. national program of flood insurance (National Flood Insurance Program or NFIP) may suffer a failure. A group made up of organisations from the sectors of insurance, banking and real estate have signed a joint letter asking the congress to act to prevent such a situation from occurring.

In the meantime that the program be reformed and modernized, the signatories of the letter urging the Congress to reauthorize it periodically with the extension of the program, without which millions of Americans could be left in danger, move it.

“An interruption of coverage NFIP would be devastating to thousands of businesses across the United States, said Mary Roth, CEO of the company, risk management RIMS, which is part of the group of signatories. For too long, the program has received extensions to temporary. RIMS encourages the Congress to consider the millions of Americans in danger, the big impact that a failure would have on the recovery efforts after a flood and the disruption caused by the countless contracts to real estate which would be immediately cancelled. “

Slow down the efforts for compensation

In addition, the group agreed that a gap in coverage can slow down the efforts for compensation in the aftermath of hurricanes Florence and Michael ” by making it more difficult for recipients of disaster assistance to meet the requirements of the flood insurance “.

“The NFIP is currently the primary source of flood insurance in the United States, and Americans deserve certainty and stability on the market for flood insurance to protect their home and their loved ones “, one can read in the missive.

The group reminds that the program has been extended temporarily seven times and to two failures in 2017 and 2018. The last extension date of November 2017, while the House of representatives and the Senate reached a bipartisan agreement to extend the one-year program.

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