Underwriting Ceases on National Flood Insurance

FOR IMMEDIATE RELEASE
FROM THE OHIO DEPARTMENT OF INSURANCE

Monday, March 29, 2010

CONSUMER ADVISORY:

National Flood Insurance Program Not Issuing New Policies

COLUMBUS — Ohio Department of Insurance Director Mary Jo Hudson is advising consumers that the National Flood Insurance Program (NFIP) ceased issuing new policies or renewing policies to cover flood damage, following the expiration of the program’s federal authorization at midnight March 28, 2010. Congress will not act again on reauthorization legislation until after it returns to session on April 12.

The NFIP sunset could cause short-term problems for consumers waiting to close on the sale of a property within a Special Flood Hazard Area. However, consumers with current policies are still covered by the federal program. Only those seeking to purchase a policy during this time will be affected. Until Congress approves this reauthorization, the NFIP cannot issue new policies, increase coverage or approve renewal policies.

Standard homeowners’ insurance policies do not cover flooding. The NFIP was created in 1968 to help provide a means for property owners to financially protect themselves from floods associated with hurricanes or the overflow of rivers or lakes due to rain storms and winter melt. Congress is responsible for the continued funding of the program.

If you have questions about your flood coverage, contact your insurance agent or the NFIP at http://www.floodsmart.gov/. 

While the Department encourages Ohio insurance consumers with questions and concerns about flood insurance to call us, please note that flood insurance coverage is a federal program and the Department will be unable to get Ohioans coverage while the hiatus is in effect. Those with questions about their insurance can call the Department’s consumer hotline at 1-800-686-1526.  Free information can also be obtained at http://www.insurance.ohio.gov/.

Ohio Department of Insurance Contacts:

Robert Denhard, Public Information Officer

(614) 644-3366

Jarrett Dunbar, Public Information Officer

(614) 644-2475