American Consumers Should Hurry to Acquire Flood Insurance for 2010 Hurricane Season

As the 2010 hurricane season is about to start, a lot of American homeowners should consider to acquire a home insurance that covers hurricane-related damages to protect their properties. However, according to Insurance Information Institute, Americans consumers seeking for flood insurance must hurry because the National Flood Insurance Program (NFIP), controlled by the Federal Emergency Management Authority, will lose its authorization in providing the kind of insurance on September 30, 2010. The organization also added that there is no guarantee that Congress will extend it immediately.

The NFIP flood insurance covers direct physical losses by flood and losses resulting from flood-related erosion caused by heavy or prolonged rain, snow melt, blocked storm drainage systems, levee dam failure, coastal storm surge, or other similar causes. Waters must cover at least two acres or affect at least two properties to be considered a flood. This kind of insurance is vitally important especially during hurricane season.

“In the past year, the National Flood Insurance Program’s ability to sell new policies, and renew existing ones, has been interrupted numerous times because Congress has not reauthorized the NFIP in a timely manner,” said Michael Barry, vice president, Media Relations at the I.I.I. “The program was allowed to lapse for weeks starting on June 1 of this year, the official start of the hurricane season, and the NFIP could very well meet the same fate again this fall.”

On the other hand, there are lots of problems directly linked to previous ends of the NFIP that include making it difficult for consumers to secure the insurance required to settle a home loan. This is especially an issue in areas that are prone to floods, such as areas along Mississippi, such as Louisiana and Arkansas and other near states.

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