House Members Stall Flood Insurance Program

NU Online News Service, March 17, 3:54 p.m. EDT

WASHINGTON–Angry over Senate tax law proposals, a House maneuver is holding up action on a Senate measure that would extend the National Flood Insurance Program through the end of the year.

Rep. Sander Levin, D-Mich., signaled the House's move concerning H.R. 4851, the Continuing Extension Act of 2010, which includes a provision extending the NFIP only to April 30.

The House today unanimously passed H.R. 4851 legislation containing the temporary flood program extension until April 30. This action creates an impasse between the House bill, and the Senate bill, which contains a provision extending the NFIP until Dec. 31. Congress has until March 26, when it leaves for 10 days for its Easter recess, to deal with the issue.

The House bid to stall the bill comes while talks continue with the Senate over the substance of the tax cuts that would be extended under the legislation. Houlse members feel the legislation should contain specific provisions they want for their constituents.

An NFIP extension until Dec. 31 is contained in another House bill (H.R. 4213) which extends a number of tax cut provisions which expired at the end of last year. It was passed by the Senate last week and sent back to the House for further action.

The latest House bill, as does the Senate bill, extends the eligibility for a 65 percent government subsidy of COBRA health insurance premiums for laid-off workers. But the House extension would only be until April 30; the Senate bill extends the program until Dec. 31.

At the same time, NBC News last night broadcast a "The Fleecing of America" report concerning the Federal Emergency Management Agency, which runs the NFIP program, publishing maps that erroneously listed certain areas as in flood-prone districts and "forcing" homeowners in these areas to buy flood insurance.

Regarding further uncertainty in the reauthorization of the NFIP, Kathy Mitchell, a federal affairs director at the National Association of Mutual Insurance Companies, said NAMIC "appreciates the work being done by Congress to ensure that there won't be another lapse in the NFIP."

She said NAMIC's preference is for a longer-term extension, which would keep the program running through the 2010 storm season and give Congress the time to pass much needed common-sense reforms, "but the important thing is to make sure that homeowners are protected in the event of a flood."

"The National Flood Insurance Program provides protection for millions of homeowners and businesses across the country," Ms. Mitchell said.

"While not perfect, suggesting that homeowners are being 'fleeced' when they purchase this coverage is irresponsible and potentially dangerous," she said.

She noted, "Without the NFIP, many homeowners would be vulnerable to the risk of losing their home to a flood and being left to pay for repairs or reconstruction as well as their ongoing mortgage payments."

A FEMA spokesman reacting to the some of the broadcast criticism of the flood program.said, "Under congressional guidance and direction, we continue to update our flood hazard maps.This process ensures that communities have solid data when making decisions on how to mitigate and insure against the risks posed by floods.

Flood hazards are constantly changing due to natural as well as man-made factors and, as with any measurement, additional information can improve the product. That's why during this collaborative process we work closely with local communities to ensure that any verifiable data that will strengthen the flood maps is included and incorporated."