In the News Insurers Won’t Get Whole Tab
The cash-strapped program is currently able to borrow around $3 billion more from the Treasury to pay claims before it hits a cap of $20.8 billion. Losses from Sandy are likely to force the Department of Homeland Security to ask Congress for more resources, said Ray Lehmann, senior fellow at the R Street Institute, a free-market think tank focused on insurance issues.
Federal law requires people who buy houses in designated flood-hazard areas with federally backed mortgages to purchase policies from the National Flood Insurance Program, though not all maintain coverage for the life of the loan.
