The Federal Emergency Management Agency (FEMA), which administers the National Flood Insurance Program (NFIP), has notified Congress that without the approval of additional borrowing authority, funds available to pay claims will be exhausted sometime around the week of January 7.
Payments on more than 115,000 claims in states across the country may be delayed until Congress increases the NFIP borrowing authority, according to FEMA.
Supplemental legislation currently under consideration by Congress includes $9.7 billion in additional borrowing authority to support the NFIP to address claims resulting from Superstorm Sandy and other floods. The NFIP said it continues to pay out claims related to Sandy. To date, nearly 140,000 claims have been made and $1.7 billion has been paid out to survivors.
The Senate has already passed a measure increasing the NFIP’s borrowing authority. The House has promised a vote on the NFIP monies today. The House has postponed a vote on additional disaster relief for states struck by Superstorm Sandy until Jan. 15.
“FEMA continues to work closely with Write Your Own (WYO) partner companies to meet the needs of survivors and accelerate partial payments for claims,” said Dave Miller, FEMA’s Associate Administrator for the Federal Insurance and Mitigation Administration. “We urge timely congressional action with regard to the pending supplemental to continue to meet survivor needs.”
NFIP policies allow up to approximately 90 days after receipt of a claim to make a payment. Upon depletion of borrowing authority, FEMA said it will work to ensure any available funds, including ongoing premium payments, may be applied to claim payments
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