National Flood Insurance Program At Risk

In addition to farm and crop insurance, agriculturists rely heavily on flood insurance following major storms.

The United States Senate is in the process of making changes to the flood insurance program in light of the recent hurricanes, Insurance Journal reports.

In 2005, Hurricane Katrina plowed its way through the southern Atlantic and Gulf Coast, leading to an estimated $96 billion in damages according to The White House in The Federal Response to Hurricane Katrina Lessons Learned report.

As a result, the National Flood Insurance Program, which finances flood damage claims across the United States, is now in an $18 billion debt and may expire by October, unless Congress passes a bill to extend the program.

The suggested legislation presented to the Senate would extend NFIP for five years.

"Reaching a consensus on this legislation before the NFIP expires at the end of the month is absolutely vital, especially during hurricane season," Judy Biggert, U.S. Representative and chairwoman of the House Financial Services Subcommittee on Insurance, said. "The House and Senate versions of this bill include far more areas of agreement than disagreement, and I’m confident that we can work out a compromise. The NFIP is too important to let lapse, and too in debt to continue without reform."

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