WASHINGTON—Insurance industry groups say they hope the U.S. Senate follows the House's lead by passing legislation to extend the National Flood Insurance Program through Sept. 30, 2016.

The House approved the bipartisan Flood Insurance Reform Act of 2011 on a 406-22 vote Tuesday after defeating an amendment that would have killed the program next year. Insurer and business groups, including the Risk & Insurance Management Society Inc., sent a letter to House leaders Monday opposing the amendment.

Among other things, the reform bill, which enjoys the support of the Obama administration, would extend the program for five years beyond its Sept. 30 sunset. It also would require studies of the possibility of giving the private insurance industry a great role in flood insurance, and reducing subsidies for the program.

New York-based RIMS hailed the vote.

“We're pleased with the vote in the House and anticipate eventual passage in the Senate because this maintains an important risk financing tool for our members,” said John Phelps, RIMS board liaison to the external affairs committee.

“Although we believe certain improvements to the program can and should be made, elimination of the program was not in the best interests of commercial insureds who rely on flood coverage through the program,” said Mr. Phelps, who also is director-business risk solutions at Blue Cross and Blue Shield of Florida Inc. in Jacksonville.

Insurers strongly supported the reform bill, and want the Senate to follow suit quickly.

5.6 million policyholders

“The certainty and stability of this program is an essential component of protecting the homes and businesses that may incur losses as a result of flooding,” Leigh Ann Pusey, president and CEO of the Washington-based American Insurance Assn., said in a statement. “With more than 5.6 million policyholders dependent upon the NFIP for their protection against floods, it is our sincere hope that the Senate will now move to enact similar reforms quickly.”

“Sept. 30 is fast approaching and there's no time to lose,” Jimi Grande, senior vp in the National Assn. of Mutual Insurance Cos.' Washington office, said in a statement. “The House has done its part to address this issue. The ball is now in the Senate's court and the clock is ticking.”

In a statement, Ben McKay, senior vp in the Property Casualty Insurers Assn. of America's Washington office, noted that the NFIP has been allowed to lapse several times in recent years. The temporary interruptions occurred because the House and Senate could not agree on whether the program should be required to offer wind coverage as well as flood coverage.

“In 2010 alone, the NFIP lapsed four times and flood coverage could not be purchased or renewed for a total of 53 days,” said Mr. McKay. “Lapses in NFIP coverage have created uncertainty in the housing market and left homes and businesses even more vulnerable to devastating floods, while leaving taxpayers exposed to costly relief efforts.”