Calling its extension “a temporary fix,” the Independent Insurance Agents & Brokers of America is nonetheless commending the House for voting to extend the National Flood Insurance Program.

Maxine Waters

Set to expire on Sept. 30, the House approved a six-month extension to March 31, 2010. The Senate and president must approve the extension.

The NFIP bill (HR 3139) was sponsored by House Financial Services Housing Subcommittee Chairwoman Maxine Waters (D.-Calif.) and committee chairman Rep. Barney Frank (D-Mass.).

In March, President Barack Obama extended the program through September just as it was about to expire. Frank and Waters introduced the new legislation in July for a second extension, citing the importance of the program following Hurricane Katrina and other storms that devastated the Gulf Coast.

“Letting the program expire in the middle of hurricane season would have serious repercussions for areas prone to flooding,” Waters said when the extension was proposed.  “A six-month extension is prudent and necessary.”

Charles E. Symington Jr., Big I senior vice president for government affairs said while the extension “is just a temporary fix,” it is also “a significant and welcome development for the millions of homeowners and small businesses who count on NFIP as a safety net in the event of flooding.

“If the NFIP is allowed to expire, millions of consumers will be left vulnerable the next time a flood devastates a community,” Symington said in a statement.

Established in 1968, the NFIP provides one trillion dollars of flood insurance to more than five and a half million American homes and businesses.

John Prible, Big I assistant vice president for federal government affairs, said recent years have provided “too many examples” of destruction by floods and the importance of preserving the federal program.

“The Big I strongly believes that homeowners and businesses need both higher coverage limits and business interruption insurance to adequately insure their property,” Prible said. “We hope that as Congress considers a long term reauthorization, they will include these reforms in legislation and look forward to working with the Obama administration and Congress for a more permanent solution. ”