Funding Doubled For FloodInsurance
WASHINGTON - (09/14/05) -- The Senate approved a more thandoubling in funding for the National Flood Insurance Program onMonday, sending the emergency spending bill to the certain signinginto law by President Bush. The bill will increase available moneyfor the program administered by the Federal Emergency ManagementAgency to $3.5 billion a year, up form the current $1.5 billion.The insurance program is supposed to cover all homes located in aflood plain, which are required to have flood insurance. It isadministered by the federal government because it is too risky forprivate insurers to undertake. The program is supposed to befinanced by insurance premiums but is almost certain to have beshort of cash because of the hundreds of thousands of claimsrelated to Hurricane Katrina.