Flood Insurance Program Set To Expire

By Steve Alexander Reporter

Program ends Septemeber 30th unless its renewed by Congress. Flood Insurance Program Set To Expire

Published: Tue, September 23, 2008 - 9:15 pm Last Updated: Wed, September 24, 2008 - 10:34 am

Steve Alexander

Some disturbing news for people who have flood insurance.
The National Flood Insurance Program is set to expire on September 30, unless its renewed by Congress.
Butch Kinerney with the National Flood Insurance Program told News Five that there are still differences between the House and Senate on bills to re-shape the program.
Kinerney said if the program isn't renewed by Congress, policies coming due after September 30 won't be renewed, and "we won't be able to write new policies, and that could actually affect people getting mortgages in high-risk flood areas. In those areas, if you've got a federally backed mortgage, its required for you to have flood insurance and if we can't sell policies, the mortgage companies can't write those mortgages."
Mike Patrick lives in Cypress Shores.
Patrick has flood insurance, but he hadn't heard the program may expire next week.
When asked if he was concerned, Patrick said, "A little bit, yeah, that the government would let us be without insurance. We need protection."
Steve Brachalus is still putting the finishing touches on his new house in Cypress Shores that he started building after Hurricane Katrina three years ago. He said without flood insurance, "I don't know where we'd be: probably still in the old house, working on it."
Ken McElhaney with State Farm Insurance in Mobile writes flood insurance policies.
McElhaney said, "The political process being what it is, its always like watching sausage get made, but I think Congress will be able to get something worked out."
Brachalus said he thinks so too, because "if they (Congress members) are going to bail everybody else out, they need to stick with the flood program."
One senator has introduced a bill extending the flood insurance program until the end of April.

Continue listening after reporter Steve Alexander's story for more information from NFIP spokesman Butch Kinerney on what is stalling renewal of the NFIP plus what it all mean for homeowners and potential homeowners.