Jan. 4, 2013
/PRNewswire-USNewswire/ -- Congress did the right thing by voting to raise the borrowing limit of the National Flood Insurance Program (NFIP), according to the National Association of Professional Insurance Agents (PIA).
Friday January 4
, the U.S. Senate and House voted to increase the borrowing authority of the NFIP by one-third, to
. The bill now goes to the President for his signature.
"PIA is pleased that Congress has begun to act to assure that valid claims filed by property owners who are insured under the National Flood Insurance Program (NFIP) will continue to be paid," said PIA National assistant vice president for federal affairs
. "The action by Congress to raise the borrowing authority of the NFIP will alleviate the immediate threat that many flood claims from Tropical Cyclone Sandy, as well as other storms, would not be paid. We appreciate that Rep.
(R-N.J.) took the lead to introduce a bill that would increase funding to the NFIP."
Funding for insured flood claims along with relief for the victims of Tropical Cyclone Sandy got ensnared in
politics when House Speaker
) cancelled a scheduled vote on a Sandy aid package on
, minutes after the House approved a deal to avoid the so-called "fiscal cliff." That prompted cries of outrage from lawmakers from areas in the Northeast devastated by the
storm, along with
(R). Boehner quickly relented, scheduling a vote on increased NFIP borrowing authority for
and a Sandy aid package for
Of the need to pay the claims of those who are insured by the NFIP, PIA National President
Andrew C. Harris
said, "Not paying valid claims is simply not an option. The federal government has both a legal obligation and a moral imperative to pay to indemnify policyholders for their covered flood losses in policies backed by the NFIP."
Since Sandy struck, PIA immediately began lobbying Congress for action to increase the NFIP's borrowing authority, as well as for expedited relief for the victims of the storm.