The federal flood insurance program has dried up just days after FEMA was in South Dakota urging homeowners to buy it because of the threat of flooding. Congress failed to extend the National Flood Insurance Program, so it expired Monday.
The National Flood Insurance Program is essentially the only place anyone can buy flood insurance. Almost every local insurance agent across the country use the program to cover homeowners during a flood.
As noted previously, the reason that the government is “essentially the only place anyone can buy flood insurance” is simple: only our government is going to underwrite a sure loss.
Here is the other problem with the flood insurance program–what the government gives, the government may take away. Right now, the government has taken it away. It may well give it again later–when Senator Bunning is satisfied that the Congress is not spending even more money it does not have, but I wouldn’t necessarily bet on it.