The devastation left in the wake of Hurricane Irene has underscored the importance of flood insurance. Vivid images of homes submerged in water and neighborhoods transformed into rushing rivers left little doubt of the need for further reform and long-term extension of the National Flood Insurance Program.
Despite these recent events, the NFIP is set to expire on Sept. 30 for the 10th time in three years. Congress has been approving short-term extensions of the NFIP’s authority to issue flood insurance policies while debate continues over long-term fiscal reforms to the program. This has caused several lapses of the program for multiple weeks at a
time, and left tens of thousands of home buyers unable to purchase a house because their area requires flood insurance to obtain a mortgage.
Moving forward Currently, a bill to extend the NFIP’s authority by 5 years is awaiting approval in the U.S. Senate. Talk to Realtors® in your area to find out about how the potential for floods and other natural disasters affect the local real estate market, and what would happen to local home sales if the NFIP were not extended. To learn more about
the NFIP, visit www.realtor.org/topics/nfip