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Flood Insurance Financing Expanded for Katrina Victims
President Bush on Sept. 20 signed into law two flood insurance bills that will provide more money for Hurricane Katrina victims.
The National Flood Insurance Program Enhanced Borrowing Authority Act of 2005, H.R. 3669, allows the National Flood Insurance Program (NFIP) to borrow up to $3.5 billion a year from the Treasury to pay claims from Katrina. That is an increase from a current ceiling of $1.5 billion.
The NFIP offers affordable flood insurance to home owners and businesses in flood plains and other low-lying areas that otherwise might not be able to obtain such coverage.
More than 20,000 communities nationwide participate in the NFIP and the program currently covers approximately 4.5 million policyholders.
The NFIP pays up to $250,000 for residential flood damages and $500,000 for non-residential buildings.
The President also signed into law H.R. 804, legislation that excludes federal financial assistance for flooding from being considered as income, so that a person’s eligibility for other government benefit programs isn’t affected.
To read this legislation, click here and enter the bill number in the box at the upper left.
For more information, e-mail Michael Strauss at NAHB, or call him at 800-368-5242.
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