WASHINGTON—The Obama administration will ask Congress to raise the National Flood Insurance Program’s borrowing authority to $25 billion, according to sources.
The administration wants to move promptly on the issue to ensure no repeat of what happened in late 2005 in the aftermath of Hurricane Katrina, according to Don Griffin, vice president of personal lines at the Property and Casualty Insurers Association of America and head of the industry’s flood insurance coalition.
“Now-homeless people in Staten Island and New Jersey and on the Long Island shoreline, living in shelters with their homes destroyed, can’t be made subject to the timetable of politics. This authorization has to proceed on the timetable of both good business practices and human compassion,” he says.
Tony Bullock, lobbyist for the NFS in Washington, adds that it might be premature to project what the borrowing limit should be increased to because it is still too early to tell what flood insurance losses from Sandy might be. He says the current estimate is between $6 billion and $8 billion.