The National Flood Insurance Program is likely to run out of money to pay Superstorm Sandy claims, meaning it will probably need Congress to authorize a loan, a FEMA official says.
“The claims numbers [from Superstorm Sandy] are staggering,” says Edward L. Connor, deputy associate administrator of the Federal Insurance and Mitigation Administration, a unit of the Dept. of Homeland Security.
He says the “burn rate” at which the agency is going through money will require it to use its $900 million in cash and its remaining $2.9 million in borrowing authority by the end of the month in order to pay claims generated by the storm.
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