IIABA Warns Consumers To Renew Flood Insurance

NU Online News Service, Dec. 27, 1:30 p.m.EST--The Independent Insurance Agents & Brokers ofAmerica is urging its members to advise consumers that they need topay their flood insurance premiums before Jan. 1 to avoid gaps incoverage.

Due to Congress' failure to reauthorize the National FloodInsurance Program for 2003, consumers can find themselves withoutflood insurance if they wait until next year, the associationwarned.

Robert Rusbuldt, the Alexandria, Va., based association's chiefexecutive officer, said in a statement that premiums or newapplications need to be in the hands of their insurance agentbefore Dec. 31 to ensure protection at the beginning of theyear.

"While IIABA and many other national flood insurance programadvocates are urging lawmakers to address this issue immediately inthe new Congress, a lapse in the NFIP is imminent and could causeserious problems for homeowners whose policies are not issued orrenewed before the end of this year," Mr. Rusbuldt said.

The situation, IIABA said, primarily affects property owners whoneed to renew policies in January, home-buyers who must purchaseflood insurance as a condition for obtaining mortgages formfederally regulated lenders, and property owners looking torefinance their mortgage.

"If you are planning to close on your house in early January,make sure you pay your flood insurance premiums now," Mr. Rusbuldtadvised consumers. "Otherwise, this situation may complicate thoseplans."

Until the 108th Congress reauthorizes the program, the NFIP willnot have authority to issue new policies, renew policies, orincrease coverage.

Rep. Mike Oxley, R-Ohio, who chairs the House Financial ServicesCommittee, and Barney Frank, D-Mass., the committee's rankingDemocrat, said they would offer legislation to reauthorize theprogram the first day Congress convenes on Jan. 7.