Time is ticking for lawmakers to make a decision on the program. State Senator John Kennedy believes if Congress doesn’t act fast, the state will be under the brink of disaster.
According to Senator Kennedy, there are more than 500,000 flood insurance policies in Louisiana. Only Texas and Florida have more policyholders.
Legislation passed an extension of the program through the hurricane season last week, but the NFIP is still set to expire tomorrow with no clear sight of progress on its renewal.
“July 31 the flood insurance programs expire. For Congress to allow that to happen would be bone deep stupid,” said Kennedy.
Back in November, the House of Representatives passed a long-term reauthorization of the program, but this bill never made it through Congress. Back in June, a ranking member of the House Committee on Financial Services began renewing the call to pass a long-term solution for the problem.
Tom Santos, with the American Insurance Association, believes this can also be an issue for home buyers and sellers. “If you don’t have a policy and you’re buying a home or you need it for a purchase, The sell of the home might get delayed,” said Santos.
The House has until July 31 to renew the program.