Skip to comments.Bush signs law to up flood insurance borrowing
Posted on 11/22/2005 2:26:14 AM PST by Crackingham
President George W. Bush signed into law legislation drastically raising the borrowing authority of the government's flood insurance program to $18.5 billion from $3.5 billion to cover claims from Hurricane Katrina and other flood disasters, the White House said on Monday.
Run by the Federal Emergency Management Agency, the National Flood Insurance Program recently has been swamped with more claims from storms than the total it has paid out since it began in 1968.
Congress approved the expanded borrowing authority last week after lawmakers said the flood insurance program needed more cash.
The program covers more than 4.7 million policies for homes, businesses and other nonresidential property owners. It is allowed to borrow from the U.S. Treasury to cover claims not covered by its premiums.
"I have reviewed your request for approval to issue notes to the Secretary of the Treasury in excess of $3.5 billion, but not to exceed $18.5 billion, for the National Flood Insurance Program and am hereby granting approval for you to do so," Bush said in a memorandum to the secretary of the Department of Homeland Security, which oversees FEMA.
The director of the national flood insurance program, David Maurstad, has warned that claims from Hurricanes Katrina and Rita could top $22 billion, and previously asked for a $5 billion increase just to get the program through November.
A Senate aide said the $18.5 billion Congress approved on Friday should sustain the program through February.
When building in an inappropriate area and you can't get insurance from anyone, you turn to FEMA. Flood prone areas do not stop FEMA from insuring you and if your home is demolished on this unsuitable site - FEMA will give you money to rebuild in the same place! Government largess at its worst! Lloyds of London might for a huge price, but FEMA will for under $250,000.00 and they will do it again and again for the same house on the same piece of unsuitable property wasted tax dollars where else do they get the $$.
The only place you can get flood insurance is from the National Flood Insurance Program, run by FEMA. You buy a policy , pay your premiums, suffer a loss then file a claim. What's wrong with that?
The homeowner pays premiums for the insurance coverage, just like every other insurance policy.