Neil Alldredge, president and CEO of the National Association of Mutual Insurance Companies (NAMIC), has issued a statement following the lapse of the National Flood Insurance Program (NFIP) due to the government shutdown.
“Because Congress failed to act, the National Flood Insurance Program has lapsed. During this time the program cannot offer new coverage or renew existing flood insurance policies. There are two full months between today and the end of Hurricane season, and every day more and more Americans will be needlessly put at risk of losing everything in a flood. We cannot allow this to happen.
“Decades of poor policy decisions – from failing to maintain adequate flood mapping to hidden subsidies that provide a false sense of security and encourage development in flood-prone areas – have put millions of Americans in the path of floodwaters. Many of them, though not enough, wisely chose to protect themselves by purchasing flood insurance through the NFIP. They should not be put at risk because Congress cannot do its job.”
The NFIP lapse means no new policies can be issued or renewed until congressional action is taken. This situation leaves many homeowners without protection during an active part of hurricane season.
