Flood Insurance is Up Again for Renewal
September 10th at 9:27pm.
The National Flood Insurance Program (NFIP) is again set to expire. The current extension, the 11th of its kind in the last 2 years, expires on Monday, September 30th at midnight.
On July 11th the House Financial Services Committee unanimously passed a 5-year reform and reauthorization legislation but the House of Representatives has not scheduled a vote. The Senate has introduced several bills but has taken no further action. Flood insurance was a priority talking point for NAR when Federal Political Coordinators met with members of Congress over the August break.
Locally, any lapse in NFIP can mean delays for home sales that are relying on the program for mortgage approval. If there was to be a lapse, NFIP cannot sell new flood insurance policies. The federal requirement to purchase flood insurance is also suspended. This leaves lenders to ultimately decide if they will make the loan at all when NFIP insurance is not available.
NAR has estimated that nationwide a lapse might impact around 40,000 home sale closings per month.
