Flood Insurance Rescue Program In Works

News

July 18th, 2011 by Doug Evans

A financial rescue for people who have been denied flood insurance coverage may be in the works on Capitol Hill.

When the Federal Emergency Management Agency (FEMA) determined that ongoing Missouri River Flooding started June 1 and has been a “flood in progress” from that date, many people had their flood insurance voided by FEMA. That’s because FEMA rules dictate that someone would need to have purchased flood insurance one month prior to the June 1 date set by FEMA.

A new proposal in Congress would remove the “flood in progress” provision. That means those who bought flood insurance after May 1 would be able to collect payments, as long as the damage occurred after the 30-day wait.

The bill has several sponsors in Congress, including Iowa Senator Chuck Grassley and Nebraska Senator Ben Nelson.

But detractors in Congress point to the fact that the bill isn’t fair to people who bought their flood insurance in time. They also point out the National Flood Insurance Program

Already is in debt $18 million due mostly to Hurricane Katrina.