Had the bill not passed, or the President refused to sign it, the Program would have lost its authority to issue new flood insurance policies or renew existing policies, at midnight on December 23rd.

Representatives of the Big “I” – the Independent Insurance Agents and Brokers of America – are pleased with the reauthorization, but continue to push for program reforms, and a long-term authorization for the program.

Speaking on behalf of fellow agents and brokers, Charles E. Symington, Jr., the senior vice president for government affairs with the Big “I,” said, “It is important to note that our work on this important issue is far from over and the next few months provide ample opportunity for Congress to pass long-term extension and reform legislation that provides the necessary certainty for consumers.”

He also pointed out that traditionally, program extensions were granted in five-year periods in order to help keep the market stable, but that in recent years such extensions have usually been in 30-day to six-month terms.

Big “I” vice president for government affairs, John Prible, also spoke about the reauthorization, saying, “Today’s extension, although greatly appreciated, is just a temporary patch.”

Why flood insurance? Because when the wildfires burned away the trees, grasses and other vegetation in the scorched areas, the healthy plant roots that usually soak up a lot of rainwater were also lost. All that charred land means that even normal storm runoff has the potential to cause mudslides, flooding, and severe erosion.

The risk of wildfire-related flood damage is greatest, of course, for property that actually burned, but it houses and other buildings either below or downstream from the burned areas are at a heightened risk of flooding, as well. In fact, it is just this sort of interconnectedness that makes flooding the most common natural disaster in the United States.

Flood insurance can be obtained through the agent who sold your regular homeowners or renter’s insurance policy.

The first law, Senate Bill 101, bars exterior repair contractors, like roofing and siding companies, from offering to cover a prospective client’s insurance deductible in order to make a sale, and also prohibits such companies from negotiating with insurance companies on an insured homeowner’s behalf.

The other law, Senate Bill 132, allows insurance companies to legally set up mobile service centers in storm-damaged areas, to make it easier for affected policyholders to file claims. Under the terms of this law, counties, cities, and other political subdivisions may not restrict insurers from establishing temporary operations. Previously, there were cases where cities and other municipalities wanted new business licenses before mobile service centers were allowed to operate after a weather-related disaster.

Before Irene actually made landfall, many insurance industry analysts were expecting the losses to meet or exceed $10 billion, but once the storm actually arrived it became clear that the damage was much less than expected.

AIR, whose estimate extends to onshore U.S. properties, is the corporation that makes the software that insurers use to model – or predict – exposure to disasters like earthquakes and hurricanes. On Monday, insurance shares rallied much more significantly than the rest of the market, and it is believed that this is based on investors being relieved that payouts would not be as extensive as predicted.

Even with better-than-expected numbers, however, Hurricane Irene is being considered a “worst case scenario” by some analysts, especially for Allstate Corp. and Travelers Companies, Inc, which may have just had some or all of their third-quarter earnings literally washed away. Nevertheless, this should not prompt any kind of industry-wide insurance rate increases.

Of the areas affected, millions were still without power and suffering from heavy flooding even late yesterday, especially in suburban New Jersey and rural Vermont. Adding up those losses will take some time, as will sorting out how many of those affected individuals and businesses had government-backed flood insurance.

On the up-side, insured losses in the Carolinas are estimated at a ‘mere’ $200 million.

According to the Governor, who issued a statement on Wednesday, the July 27 flash floods in the northwest part of the state caused damage in Carroll, Jo Davies, and Stephenson counties that will cost the residents and business owners there months of recovery time.

The governor’s statement also said that personnel from the Illinois Emergency Management Agency have been cooperating with officials in all three counties in order to coordinate requests for state-administered resources. He also said that the state has a strong commitment to helping those communities recover.

As they do every August, federal storm watchers updated their outlook for the 2011 Atlantic hurricane season last week, increasing the number of expected “named” storms from the initial predictions made back in May.

NOAA (National Oceanic and Atmospheric Administration) forecasters are now saying they expect three to five of this year’s storm’s to develop into hurricanes of category 3 or higher, with winds topping 110 miles an hour.

Gerry Bell, Ph.D., the lead seasonal hurricane forecaster at the Climate Prediction Center elaborated, saying, “The atmosphere and Atlantic Ocean are primed for high hurricane activity during August through October. Storms through October will form more frequently and become more intense than we’ve seen so far this season.”

The climate factors predicted in May to support an active season include exceptionally warm temperatures in the Atlantic Ocean (actually the third warmest temperatures on record), the possible return of La Niña, and the “tropical tropical multi-decadal signal, which since 1995 has brought favorable ocean and atmospheric conditions, leading to more active seasons.” Also at play is a reduced vertical wind shear and lower air pressure across the tropical Atlantic.

Based on all of this information, the confidence for a more-active-than-normal hurricane season has been revised upwards from May’s 65% to a worrisome 85% this month. As well, the number of predicted named storms has increased from 12-18 in May to 14-19 as of last week, with the expected number of hurricanes now at 7-10, up from 6-10.

What does all this mean to the average coastal homeowner? Don’t be lulled into false security by a season that has been quiet so far; check on your wind and flood insurance coverage before it’s too late.

Residents of an unincorporated part of the state, St. Tammany Parish, are going to receive a decrease of $1.9 million in premiums for federal flood insurance, and it’s because the parish’s flood rating has been improved, which translates into an average drop in premiums of 10%.

How did this happen? Well, according to Parish president Kevin Davis, the community has been working very hard on various flood prevention projects.

At the end of the first quarter of this year, there were 35,720 flood insurance policies in place in St. Tammany Parish, at a cost of about $19.7 million a year to the residents.

So far, the federal flood insurance program (NFIP) has paid almost $1 billion in claims there.

It should come as no surprise, then, that insurance regulators in coastal states like Virginia are strongly suggesting that homeowners – especially those with coastal property – spend some time this week reviewing their homeowners insurance policies.

Representatives from Virginia’s State Corporation Commission want to remind policyholders that some insurers include a deductible for hurricane or wind losses in their policies, but with other insurance companies such coverage is optional. The deductibles also can be written in two ways: either to be applied as a percentage of the coverage on the dwelling, or as a flat amount.

As well, insurance regulators want people to be reminded that since a lot of the damage from a hurricane is actually caused by flooding, separate flood insurance, which can be obtained through the National Flood Insurance Program, may be required.

Automobile insurance, the Virginia commission says, should also be reviewed to see whether wind or hurricane damage is covered.

As well, Virginians – and all coastal homeowners – should make copies of their vital records such as passports, driver’s licenses, social security cards, and birth certificates, and place them, and copies of their insurance policies, in safe, waterproof locations. A foil-wrapped package, inside a zip-top bag, in the freezer, is generally safe.

According to forecasters at Colorado State University, we’ll see an above-average Atlantic hurricane season. They’re predicting nine hurricanes, five of which are likely to be major, and a 70% chance that there will be at least one which hits the American coastline.

This forecast is actually a slight reduction from the one CSU issued last December, which predicted 16 named storms of which nine would turn into hurricanes, five of which would reach Category 3 or higher on the Saffir/Simpson rating scale.

Last year, there were 19 named storms making it the third most active season (tied with 1897 and 1995) in recorded history. Of those, there were 12 actual hurricanes (making it the second highest season, along with 1969), five of which were major.

The environmental factors determine this year’s prediction, which includes a 72% chance that at least one major hurricane will make landfall in the U.S., include warm surface temperatures in the tropical Atlantic and neutral temperatures in the Pacific. The reduced prediction comes from cooling in the Atlantic and warming in the Pacific.

It’s important to remember that there is no homeowners insurance product specifically for hurricane protection. Instead, a combination of hazard insurance, wind insurance and flood coverage is required. If you live in or near a coastal area, consider checking your coverage now.

The committee, which is chaired by Representative Judy Biggert (R-IL), launched its NFIP (National Flood Insurance Program) hearings last month. Last Friday, Biggert shared a revised version of the bill, with changes spawned by testimony FEMA administrator (and NFIP overseer) Craig Fugate.

As it currently stands, the Flood Insurance Reform Act of 2011, also known as HR 1309, re-authorizes the program for five years and includes improvements to the way finances are handled and rates are set, as well as increasing the participation of private sector insurers.

Other changes, made last month, include clarifications to the risk mapping standards, and to FEMA’s authority to recommend the rebuilding or demolition of certain properties in order to lessen the financial assistance needed. The bill also requires FEMA to seek proposals from private insurers, and report the results.

Currently, the NFIP is more than $17.75 billion in debt, and much of that is attributed to the hurricanes that devastated the Gulf Coast in 2004 and 2005.

In a statement, Biggert said, “NFIP is deeply in debt, and its current structure simply cannot provide the reliable protection that homes and businesses need without putting taxpayers at extraordinary risk. By putting the program on sound financial footing and encouraging private sector participation within the market, our bill addresses the concerns of homeowners, businesses, industry experts, and taxpayers.”

The flood insurance program‘s last overhaul was in 2004. Since then, it has taken a lot of criticism for under-pricing risk, and promoting development in areas that are known to be flood-prone.

The current authorization for the program expires in September. It is hoped that a new law will be passed by then.