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Congress fails to reauthorize flood insurancePosted On Wed, June 2, 2010
At a time when interest in buying new flood insurance policies likely can't get any higher, the federal government has once again stalled, forcing those who need it to wait.
The issuing of federal flood insurance has been temporarily suspended after Congress failed to reauthorize it for the third time this year, according to a report in the Tennessean newspaper. While the delay doesn't affect existing policies, those seeking new ones must wait for Congress to approve new funding for the program.
Even pending policy sales can't be approved, meaning that many across America cannot open their home or business, the paper said. Most lenders require borrowers that live in areas with a high danger of flooding to have such insurance. While the House passed the reauthorization, the Senate went into recess before doing so, and the earliest it can be approved is next Monday.
Meanwhile, crippling flooding in Tennessee, as well as the start of hurricane season along the Gulf Coast keeps demand high. According to USA Today, 2010's hurricane season could break records for its ferocity, with an estimated eight to 14 storms becoming hurricanes, and about half of those being "major" storms.
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