Though the recent Midwest flooding has been devastating, it is not expected to produce enough claims to significantly decrease the reserves of the National Flood Insurance Program because of the small number of policies in the area.

After borrowing from the U.S. Treasury during Hurricanes Katrina and Rita, NFIP incurred approximately $20 billion in debt. NFIP will not be able to even pay the interest on that debt while paying ongoing claims. However, the financial impact of the flooding will likely be small, and the program should be able to cover claims without having to borrow funds from the Treasury.

For more information, visit www.fema.gov/business/nfip/.

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