[Includes excerpts from Dec. 12, 2002 FEMA Press Release]
Legislation (H.R. 11) reauthorizing The National Flood Insurance Act of 1968 was passed by Unanimous Consent of the U.S. Senate on January 9th and cleared for the President's signature. The reauthorization will be retroactive to December 31, 2002.

On November 22, Congress had adjourned without certain aspects of the NFIP having been reauthorized. Although this had no effect on the vast majority of flood insurance policyholders, whose coverage will remain in effect during this hiatus, it did affect the NFIP's ability to write new policies and renew existing ones.

While FEMA was confident that Congress would move quickly to fully reauthorize the NFIP when it reconvened in early January, the limited interruption was of concern to property owners who needed to renew policies in early January, home-buyers who were required to purchase flood insurance as a condition for obtaining mortgages from federally regulated lenders, and property owners refinancing existing mortgages who were required purchase or renew such coverage.

Once reauthorization occurs, the NFIP will honor all effective dates for flood insurance policy coverage during the hiatus, including the start of applicable waiting periods and having a policy in force as of a loan settlement date. Thus, any flood insurance claims will be appropriately honored once authority is reestablished. Policies in force remain in force, and claims under those policies can continue to be paid after January 1, 2003.

FEMA Press Release

[If you come across news of regional interest, please email to asebring@emforum.org or submit via our Feedback Form.]