The Wall Street Journal | By: Rachel Witkowski and Leslie Scism | GPE – September 12, 2017:
A federally underwritten program, already roughly $25 billion in debt from earlier storms, faces huge new claims as Hurricane Harvey poses new hazards to a giant U.S. flood insurer already facing mounting debt and a reauthorization fight in Congress.
Originally published August 26, 2017: The National Flood Insurance Program, created about 50 years ago because private insurers were unwilling to risk catastrophic flood losses, could be inundated with billions of new claims following Harvey’s initial Category 4 winds and colossal rainfall.
Yet the U.S. program is scheduled to expire on Sept. 30 and has just $5.8 billion left it can borrow from the Treasury to meet new claims, according to January figures reported to Congress. Many people buy the government policies through private-sector insurers, which are compensated for that service.
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